Author Question: One lesson of the Great Depression was that potential GDP could _____. a. be too low to ensure full ... (Read 61 times)

Garrulous · **on:** Jun 30, 2018

One lesson of the Great Depression was that potential GDP could _____.
a. be too low to ensure full employment if the population was growing
b. be too low to ensure full employment in a capitalist economy
c. be too low to ensure full employment in a market economy
d. fall short of full-employment GDP
e. exceed equilibrium GDP

Question 2

Which of the following is true of leakages and injections in the circular flow model?
a. Leakages minus injections equal gross domestic product (GDP).
b. Injections minus leakages equal gross domestic product (GDP).
c. Leakages minus injections equal zero in equilibrium.
d. Leakages must be less than injections for an economy to be in equilibrium.
e. Leakages must be greater than injections for an economy to be growing.