Using the data in the above table, if potential GDP for this economy is $25 billion, then in order to restore full employment, the federal funds rate can be
A) lowered so that government expenditure on goods and services increase.
B) raised so that consumption expenditure, investment, and net exports increase.
C) lowered so that consumption expenditure, investment, and net exports increase.
D) raised so that net exports increase.
E) lowered so that consumption expenditure and investment increase, though net exports decrease.
C
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Which economic concept is the closest to the saying, "There's no such thing as a free lunch"?
a. Specialization b. Unlimited wants c. Underutilization of resources d. Opportunity costs e. Overutilization of resources
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.