-Refer to the graph in the exhibit.Which of the following would represent a recessionary gap?
A) Y₁ - Y₂
B) Y₁ - Y₃
C) Y₂ - Y₃
D) Y₁ + Y₂

Name: -Refer to the graph in the exhibit.Which of the following would represent a recessionary gap? A) Y₁ - Y₂ B) Y₁ - Y₃ C) Y₂ - Y₃ D) Y₁ + Y₂
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Question

-Refer to the graph in the exhibit.Which of the following would represent a recessionary gap?  
A) Y₁ - Y₂ 
B) Y₁ - Y₃ 
C) Y₂ - Y₃ 
D) Y₁ + Y₂

Quizplus · Accepted Answer

A recessionary gap occurs when the actual output (Y₂) is less than the potential output (Y₁), represented by Y₁ - Y₂.

-Refer to the Graph in the Exhibit