When actual output is less than potential output,there is a(n)

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A recessionary gap refers to the situation where the actual output of an economy is less than its potential output. This means that the economy is operating below its full capacity and is experiencing high levels of unemployment and underutilization of resources. A budget deficit, budget surplus, and trade deficit are not directly related to the level of output in an economy. An expansionary gap, on the other hand, refers to the situation where actual output is greater than potential output.

When Actual Output Is Less Than Potential Output,there Is A(n)