Starting at full employment, a business cycle can be described by the following sequence: ________ equilibrium, ________ equilibrium, ________ equilibrium.
A) full-employment; below full-employment; above full-employment
B) below full-employment; full-employment; above full-employment
C) above full-employment; below full-employment; full-employment
D) below full-employment; full-employment; below full-employment
Correct Answer:
Verified
Q241: A recessionary gap occurs when
A) real GDP
Q242: If real GDP is less than potential
Q243: The Great Depression, in which real GDP
Q244: A below-full-employment equilibrium
A) is not possible in
Q245: Suppose the economy is experiencing a recessionary
Q247: When real GDP exceeds potential GDP, then
Q248: An above-full-employment equilibrium is
A) a theoretical possibility
Q249: Inflation occurs over time as a result
Q250: Business cycles are the result of
A) regular
Q251: If the aggregate demand curve shifts _
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