Investment spending, capital formation, and rapid technological progress are directly related

Which of the following is true of an expansionary gap? a. It develops when the expected price level exceeds the actual price level

b. In the long run, this gap will close when resource suppliers negotiate lower resource payments. c. It measures the amount by which actual output falls short of the economy's potential. d. In the long run, this gap will close when the short-run aggregate supply curve shifts rightward. e. In the long run, this gap will close when resource suppliers negotiate higher resource payments.

The three major revenue sources for the federal government in order of decreasing percentages are individual income taxes, corporate taxes, and social security insurance

a. True b. False Indicate whether the statement is true or false