An economy is at full employment. Which of the following events can create a recessionary gap?
A) a decrease in money wages
B) a decrease in the quantity of capital
C) an increase in foreign income
D) an increase in taxes
Correct Answer:
Verified
Q236: When an increase in aggregate demand exceeds
Q237: Which of the following can be said
Q238: Inflation occurs over time as a result
Q239: When real GDP exceeds potential GDP, then
Q240: An inflationary gap is occurs when
A) the
Q242: If aggregate demand decreases and neither short-run
Q243: A recessionary gap occurs when
A) nominal GDP
Q244: An above full-employment equilibrium occurs when
A) the
Q245: The Great Depression, in which real GDP
Q246: If real GDP is less than potential
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