A recessionary gap exists when the equilibrium level of GDP
A) falls short of potential GDP.
B) equals potential GDP.
C) exceeds potential GDP.
D) causes inventory levels to fall.
Correct Answer:
Verified
Q103: In the 2007-2009 period, the expenditure level
Q104: Which one of the following could cause
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
Q109: Assume a simple macroeconomic model.When inventories rise
Q110: The recessionary gap is the
A)amount of unemployment
Q111: An expenditure schedule that lies below the
Q112: In a simple economy (no government), the
Q113: One of the possible consequences of the
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