What is the short-run effect of increased deficit spending on an economy experiencing a recessionary gap?
A) Aggregate demand will increase, creating an inflationary ga
Question 2
Which of the following statements is true?
A) Arithmetic or geometric growth rates gives similar answers for long periods.
B) Using either arithmetic or geometric average to compute average growth rates gives similar answers for short periods.
C) Geometric average of growth rate ignores the exponential nature of growth.
D) Arithmetic calculation of growth rate considers the exponential nature of growth.
