If $\tilde { Y } _ { t }

Name: If $\tilde { Y } _ { t } < 0$ , the macroeconomy is: A) in an expansionary gap B) at its potential level of output C) in a recessionary gap D) None of these answers are correct E) Not enough information is given.
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Question

If $\tilde { Y } _ { t } < 0$ , the macroeconomy is:
A) in an expansionary gap
B) at its potential level of output
C) in a recessionary gap
D) None of these answers are correct
E) Not enough information is given.

Quizplus · Accepted Answer

A negative output gap ($\tilde { Y } _ { t } < 0$) indicates that the actual output is less than the potential output, which is characteristic of a recessionary gap.

If Y~t<0\tilde { Y } _ { t } < 0Y~t​<0

If $\tilde { Y } _ { t } < 0$