When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from --------------------, and the government policy to eliminate this gap will --------------------real GDP and to-------------------- the price level.
A) a recessionary gap; increase; increase
B) an inflationary gap; increase; decrease
C) a recessionary gap; decrease; increase
D) a recessionary gap; decrease; decrease
E) an inflationary gap; decrease; increase
Correct Answer:
Verified
Q42: Q43: If real GDP is less than potential Q44: The aggregate supply curve slopes --------------------because a-------------------- Q45: The slope of the aggregate supply curve Q46: As the money wage rate increases, Q48: When investment increases, the --------------------in aggregate demand Q49: The money wage rate is constant when Q50: If the price of oil rises, the Q51: The AS curve shifts leftward if Q52: In the short run, a rise in
A)potential GDP
A)AD
A)the money
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