If actual output equals potential output, unusually slow potential output growth would tend to result in:
A)a recession.
B)an expansion.
C)an output gap.
D)a recessionary gap.

Name: If actual output equals potential output, unusually slow potential output growth would tend to result in: A)a recession. B)an expansion. C)an output gap. D)a recessionary gap.
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Question

Quizplus · Accepted Answer

Changes in the rate of output growth may reflect changes in the rate at which the country's potential output is increasing.

If Actual Output Equals Potential Output, Unusually Slow Potential Output