-Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant. If full-employment income were $400 billion per year in Table 10.3,
A)There would be an inflationary gap.
B)Full-employment income would equal equilibrium income.
C)There would be a recessionary gap.
D)Further information is needed to determine equilibrium income.

Question

-Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant.  If full-employment income were $400 billion per year in Table 10.3,
A)There would be an inflationary gap. 
B)Full-employment income would equal equilibrium income. 
C)There would be a recessionary gap. 
D)Further information is needed to determine equilibrium income.

Quizplus · Accepted Answer

The Answer of 
-Use Table 10.3,which shows the relationship between consumption and income.Assume the price level is constant.  If full-employment income were $400 billion per year in Table 10.3,
A)There would be an inflationary gap. 
B)Full-employment income would equal equilibrium income. 
C)There would be a recessionary gap. 
D)Further information is needed to determine equilibrium income.