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Suppose That a Mixed Open Economy Is Producing at Its Ca+Ig+Xn+G must exceed GDP. C _ { a } + I _ { g } + X _ { n } + G \text { must exceed GDP. }

Question 49

Multiple Choice

Suppose that a mixed open economy is producing at its equilibrium income and that net exports are zero. If at the equilibrium income the public sector's budget shows a surplus,


A) Ca+Ig+Xn+G must exceed GDP. C _ { a } + I _ { g } + X _ { n } + G \text { must exceed GDP. }
B) planned investment must exceed saving.
C) a recessionary expenditure gap must exist.
D) saving must exceed planned investment.

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