The GDP gap divided by the multiplier yields the
A) optimal level of government spending.
B) inflationary or recessionary gap.
C) equilibrium level of injections and withdrawals.
D) full-employment level of income.

Question

Quizplus · Accepted Answer

The GDP gap divided by the multiplier yields the inflationary or recessionary gap, which indicates how far the economy is from its potential output level.

The GDP Gap Divided by the Multiplier Yields the