True, False, or Uncertain
Explain why each of the following statements is True, False, or
Uncertain according to economic principles. Use diagrams
where appropriate. Unsupported answers will receive no
marks. It is the explanation that is important.
A6-1. An economy with a recessionary gap will never
return to long run equilibrium without policy
intervention.
A6-2. In a closed economy, investment will equal the sum
of private saving and government saving.
A6-3. An increase in private saving for
a closed economy...