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What is the effect of government expenditures G within the total expenditure schedule C+I+G+(X-IM) on the economy? Group of answer choices If the level of
What is the effect of government expenditures G within the total expenditure schedule C+I+G+(X-IM) on the economy? Group of answer choices If the level of business investment makes the total expenditure schedule C+I+G+(X-IM) lie above the 45 degree line at full employment, the economy develops a recessionary gap. If government expenditures are so that the total expenditure schedule C+I+G+(X-IM) is above the 45 degree line at full employment, the economy develops an inflationary gap. If government expenditures are so that the total expenditure schedule C+I+G+(X-IM) is below the 45 degree line at full employment, the economy develops an inflationary gap. Higher or lower government expenditures within C+I+G+(X-IM) when the economy is at full employment will not cause a disequilibrium, and hence, will have no effect on the economy
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