True & False 1- High unemployment and high rates of inflation are examples of co

Question

True & False

1- High unemployment and high rates of inflation are examples of coordination success   

2- When income rises, total expenditures remain the same

3- Equilibrium GDP occurs when total spending equals total output    

4- The equilibrium level of GDP is always accompanied by full employment and stable prices

5- When equilibrium GDP is greater than potential GDP, jobs are plentiful and labor is in great demand

6- Recessionary gaps usually lead to below full employment rates   

Explanation / Answer

1.FALSE
2.FALSE
3.TRUE
Y MUST BE EQUAL TO C+I
4.FALSE
5.TRUE
THERE IS HIGH DEMAND FOR LABOR IN INFLATIONARY GAP
6.TRUE
AD UNDER RECESSIONARY GAP IS AT A LOWER LEVEL

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