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Unformatted text preview: b. Inventories fall unexpectedly c. The price level rises d. Exports rise and imports fall 5. The aggregate demand curve shows; a. An inverse relationship between consumption and the price level b. An inverse relationship between consumption and savings c. An inverse relationship between GDP and the price level d. An inverse relationship between GDP and savings 6. A recessionary gap exists when: a. Total spending is less than output b. Inventories are declining c. The price level is failing d. Equilibrium GDP is less than full-employment GDP 7. Total savings in the economy will typically equal total investment a. At full employment GDP b. At equilibrium GDP c. Only in a market economy d. Only when there is a recessionary gap....
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This note was uploaded on 09/09/2008 for the course ECON 202 taught by Professor Fernandez during the Fall '08 term at University of Louisville.
- Fall '08