Author Question: For the economy as a whole: a. income must equal expenditures. b. expenditures exceed income ... (Read 175 times)

fagboi · **on:** Jun 30, 2018

For the economy as a whole:
a. income must equal expenditures.
b. expenditures exceed income because of taxes.
c. income exceeds expenditures because of saving.
d. expenditures exceed income because of the government budget deficit.

Question 2

As capacity utilization in an economy rises:
a. firms sell their fixed assets to remain solvent.
b. the gap between the potential output and actual output widens.
c. firms reduce their demand for labor.
d. employment of inputs by firms declines.
e. firms add more factories and machines and increase output.