In a diagram of aggregate demand and supply curves,the GDP gap is measured as the
A) Horizontal distance between the equilibrium output and the full-employment output.
B) Vertical distance between the equilibrium price and the price at which the aggregate demand would intersect aggregate supply at full employment.
C) Horizontal distance between the aggregate demand necessary to achieve full employment and the aggregate demand curve at equilibrium output.
D) Vertical distance between the equilibrium output and the full-employment output.
Correct Answer:
Verified
Q4: Which of the following would cause both
Q5: The AD shortfall is the amount of
Q6: If the recessionary GDP gap is $500,then
Q7: The recessionary GDP gap will differ from
Q8: Which of the following is generally considered
Q10: A tax cut intended to increase aggregate
Q11: Which of the following will most likely
Q12: Assume the economy is operating below full
Q13: According to Keynes,the level of economic activity
Q14: Keynesians would recommend
A)Higher taxes when there is
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents