When the expenditure schedule is too low, the result is a(n)
A)unemployment surplus.
B)inflationary gap.
C)recessionary gap.
D)budgetary gap.

Name: When the expenditure schedule is too low, the result is a(n) A)unemployment surplus. B)inflationary gap. C)recessionary gap. D)budgetary gap.
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Question

Quizplus · Accepted Answer

When the expenditure schedule is too low, there is a lack of demand in the economy, resulting in lower output and potential unemployment. This is known as a recessionary gap.

When the Expenditure Schedule Is Too Low, the Result Is