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The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP.

In the figure above, the_{--------------------}gap is equal to_{--------------------}

Question

- The figure above shows a nation's aggregate demand curve, aggregate supply curve, and potential GDP. In the figure above, the_{--------------------}gap is equal to_{--------------------}

Quizplus · Accepted Answer

The recessionary gap is the difference between potential GDP and actual GDP when actual GDP is less than potential GDP. The gap is $1 trillion.

- The Figure Above Shows a Nation's Aggregate Demand Curve, Aggregate