When there is a recessionary gap: a. Unemployment exceeds the ...

[Frost2351]

When there is a recessionary gap:
 a. Unemployment exceeds the natural rate of unemployment.
  b. Unemployment equals the natural rate of unemployment.
 c. Unemployment is less than the natural rate of unemployment.
  d. Any of the above is possible.

Question 2

If consumers spend _____ of a change in their disposable income, then a tax increase of 100 would lower consumption by 70.
 a. 35 percent
  b. 100 percent
  c. 80 percent
  d. 70 percent
  e. 50 percent

[C.mcnichol98]

Answer to Question 1

a

Answer to Question 2

d