A recessionary gap occurs when
A) the price level is too low.
B) equilibrium real GDP is greater than potential GDP.
C) equilibrium real GDP falls short of potential GDP.
D) the government does not stimulate investment spending.
Correct Answer:
Verified
Q88: Figure 9-1 Q89: Each C + I + G + Q90: Using the standard 45° line diagram, how Q91: The aggregate demand curve Q92: Figure 9-1 Q94: Government stabilization policy Q95: If total spending is less than the Q96: The expenditure schedule will shift upward when Q97: Figure 9-1 Q98: The amount by which equilibrium real GDP 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
A)slopes upward.
B)slopes downward.
C)is perfectly
A)cannot influence investment spending.
B)can stimulate
A)investment
