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28 Sep 2019
Is it possible for total spending in the economy to be greater than the money supply in the economy? Is it possible for total spending in the economy to be less than the money supply in the economy?
Explain your answers.
Is it possible for total spending in the economy to be greater than the money supply in the economy? Is it possible for total spending in the economy to be less than the money supply in the economy?
Explain your answers.
Namita kumariLv6
28 Sep 2019
Related textbook solutions
Related questions
A.
| The government has a budget surplus if: | |||||||||
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B.
| Changes in the budget balance: | |||||||||
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According to classical economists, which one of the following is the correct (recommended) sequence of occurrences?
| A. | The economy is in a recession, production falls and unemployment rises ==> the government increases spending, the money supply, and lowers taxes ==> total spending rises ==> employment rises ==> GDP rises |
| B. | The economy is in a recession, production falls and unemployment rises ==> prices, wages, and interest rates decrease ==> business costs fall, profits rise, borrowing and consumer spending rise ==> employment and production rise ==> GDP rises |
| C. | The economy is in an expansion, incomes are rising and production increases ==> the government decreases spending ==> less inflation ==> the economy continues to expand |
| D. | The economy is in a recession, production falls and unemployment rises ==> spending falls ==> more layoffs ==> less production ==> more layoffs ==> deeper recession |
| E. | The economy is in an expansion ==> prices rise ==> consumer spending falls ==> production falls ==> the economy contracts (recession) |
