Author Question: An economy is at full employment. Which of the following events can create a recessionary gap? A) ... (Read 95 times)

anjilletteb · **on:** Jun 29, 2018

An economy is at full employment. Which of the following events can create a recessionary gap?

A) an increase in foreign income
B) an increase in taxes
C) a decrease in the quantity of capital
D) a decrease in money wages

Question 2

If the current account has a positive balance of 100 and the capital and financial account has a negative balance of 90, there will be ________ in official reserves of ________.

A) a decrease; 10
B) an increase; 10
C) an increase; 190
D) a decrease; 190