Reference no: EM131169266
Answer True or False for the following questions:
1. If the consumption function lies below the 45 degree line dissaving is occuring.
2. If the AE curve lies below the 45 degree line there is a inflation at full employment.
3. Output is increased to get rid of an inflationary gap.
4. The aggregate demand curve is upward sloping.
5. The aggregate supply curve is upward sloping.
6. If the AE curve lies above the 45 degree line there is a recession at full employment.
7. If the AE curve lies below the 45 degree line spending is more than income at full employment.
8. Aggregate demand is total goods produced in the economy.
9. Aggregate supply is total goods bought in the economy.
10. Fiscal policy is money and interest rate policy.
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