A recessionary expenditure gap in a mixed open economy can be measured as the extent to which aggregate expenditures fall short of those required to achieve the full-employment GDP.

Question

Quizplus · Accepted Answer

This statement is true. A recessionary expenditure gap occurs when aggregate expenditures are lower than what is needed to achieve the full-employment GDP in a mixed open economy.

A Recessionary Expenditure Gap in a Mixed Open Economy Can