If the economy in the short run is experiencing a recessionary gap, we are likely to see
A)many workers receiving employment- insurance benefits.
B)rising output prices.
C)consumers optimistic about the future.
D)the number of employment- insurance recipients the lowest ever.
E)severe labour shortages.

Question

Quizplus · Accepted Answer

A recessionary gap means there is a contraction of output and employment, leading to higher unemployment rates. As a result, more workers would need to rely on employment-insurance benefits.

If the Economy in the Short Run Is Experiencing a Recessionary