Suppose a hands-off government policy is in place.Why might a recessionary gap persist?
A) because wages are flexible
B) because of excessive government spending
C) because of a decrease in aggregate supply
D) because wages are NOT very flexible
Correct Answer:
Verified
Q86: Q98: Suppose the expected price level exceeds the Q99: Suppose that the actual price level and Q100: Which of the following would be strong Q101: Suppose a recessionary gap is closed in Q104: Which of the following best describes the Q105: Which of the following does NOT influence Q106: In the short run, when will real Q107: How might a recessionary gap be closed Q108: In the long run, under what circumstances
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