Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75 The economy shown in Exhibit 9-5 is:
A)in a recessionary gap.
B)in an inflationary gap.
C)fully employed.
D)substantially underemployed.

Question

Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75  The economy shown in Exhibit 9-5 is:
A)in a recessionary gap. 
B)in an inflationary gap. 
C)fully employed. 
D)substantially underemployed.

Quizplus · Accepted Answer

The Answer of Exhibit 9-5 Keynesian aggregate-expenditures model where the MPC is 0.75  The economy shown in Exhibit 9-5 is:
A)in a recessionary gap. 
B)in an inflationary gap. 
C)fully employed. 
D)substantially underemployed.

Exhibit 9-5 Keynesian Aggregate-Expenditures Model Where the MPC Is 0