The recessionary gap is the
A) amount of unemployment compensation required during a recession.
B) budget deficit encountered during a recession.
C) amount of government spending needed to end a recession.
D) distance between the equilibrium level of output and the full employment level of output.
Correct Answer:
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Q105: A recessionary gap exists when potential GDP
A)falls
Q106: If the expenditure schedule must be shifted
Q107: Recessionary gaps are most likely to be
Q108: A recessionary gap exists when the equilibrium
Q109: Assume a simple macroeconomic model.When inventories rise
Q111: An expenditure schedule that lies below the
Q112: In a simple economy (no government), the
Q113: One of the possible consequences of the
Q114: Which one of the following could cause
Q115: When the expenditure level is above the
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