A recessionary gap exists if (actual)Real GDP is __________ Natural Real GDP.
A) less than
B) greater than
C) equal to
D) b and c
E) none of the above

Name: A recessionary gap exists if (actual)Real GDP is __________ Natural Real GDP. A) less than B) greater than C) equal to D) b and c E) none of the above
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Question

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A recessionary gap occurs when actual Real GDP is less than the Natural Real GDP. This means that the economy is producing less than its potential, which is a characteristic of a recession.

A Recessionary Gap Exists If (Actual)Real GDP Is __________ Natural