Within the framework of the aggregate expenditures model, what ...

[vicky]

Within the framework of the aggregate expenditures model, what will happen if an economy is operating at a real GDP greater than full-employment real GDP?
 a. An inflationary gap exists.
  b. Real GDP will fall.
  c. The inventories of firms will rise.
  d. Firms will cut back on their current rate of output.

Question 2

M1 is actually a smaller amount than M2.
 a. True
  b. False
  Indicate whether the statement is true or false

[komodo7]

Answer to Question 1

a

Answer to Question 2

True

[vicky]

Gracias!

[chereeb]

Thanks for the timely response, appreciate it