A recessionary gap occurs when
A) aggregate demand falls, but other things remain constant.
B) short-run aggregate supply falls, but other things remain constant.
C) the short-run equilibrium level of real GDP is greater than the level consistent with the long-run aggregate supply curve.
D) the short-run equilibrium level of real GDP is less than the level consistent with the long-run aggregate supply curve.
Correct Answer:
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Q298: Q299: Refer to the above figure. Suppose the Q300: Assume equilibrium real GDP per year is Q301: In the above figure, what could cause Q302: The gap that exists when equilibrium real Q304: A recessionary gap is the amount by Q305: If the U.S. government were to relax Q306: If the full-employment level of real GDP
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