Author Question: In the above figure, if the economy is at point A, which of the following is TRUE? A) There is a ... (Read 45 times)

savannahhooper · **on:** Jun 29, 2018

In the above figure, if the economy is at point A, which of the following is TRUE?

A) There is a recessionary gap.
B) There is an inflationary gap.
C) Point A is the long-run equilibrium point.
D) None of the above answers are correct.

Question 2

If a country lends more to foreign countries than it borrows from foreign countries in a year, then definitely during that year

A) it has a current account deficit.
B) it is a creditor nation.
C) it is a debtor nation.
D) it is a net lender.