A recessionary gap exists when potential GDP
A) falls short of equilibrium GDP.
B) exceeds equilibrium GDP.
C) equals equilibrium GDP.
D) inflation leads to economic disequilibrium.
Correct Answer:
Verified
Q100: Figure 9-1 Q101: Inventory reductions are a signal indicating that Q102: The equilibrium level of GDP is the Q103: In the 2007-2009 period, the expenditure level Q104: Which one of the following could cause 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 Q110: The recessionary gap is the
A)the
A)amount of unemployment
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