A recessionary gap occurs when ________ so that real GDP is ________ potential GDP.
A) aggregate supply increases;less than
B) aggregate supply decreases;less than
C) aggregate demand increases;greater than
D) aggregate demand decreases;less than
E) potential GDP decreases;greater than
Correct Answer:
Verified
Q162: If the equilibrium price level is 135
Q163: Q164: At a peak in the business cycle,the Q165: At a trough in the business cycle,the Q166: Q168: Starting from a situation of full employment,an Q169: Q170: If the equilibrium price level is 135 Q171: During an inflationary gap, Q172: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
A)real GDP is less
