In traditional economies, people base economic decisions on the precedents established by previous generations.
a. True
b. False
Indicate whether the statement is true or false
Question 2
Using the aggregate expenditure-output model, assume the aggregate expenditures (AE) line is below the 45-degree line at full-employment GDP. This vertical distance is called a(n):
a. inflationary gap.
b. recessionary gap.
c. negative GDP gap.
d. marginal propensity to consume gap.
