Which of the following is eliminated when the economy's output is equal to full-employment GDP?
A)The real GDP gap.
B)The multiplier.
C)Leakages and injections.
D)The MPC.

Question

Quizplus · Accepted Answer

When the economy's output is equal to full-employment GDP, there is no longer a real GDP gap because the economy is producing goods and services at its potential capacity. The multiplier, leakages and injections, and the MPC can still play a role in the economy even at full employment.

Which of the Following Is Eliminated When the Economy's Output