The increase in aggregate spending needed to bring an economy to full employment is called:
A) goal-oriented spending.
B) the inflationary gap.
C) gap closure spending.
D) the recessionary gap.

Question

Quizplus · Accepted Answer

The increase in aggregate spending needed to bring an economy to full employment is called the recessionary gap. This gap represents the shortfall in spending that is required to reach the full employment level of output.

The Increase in Aggregate Spending Needed to Bring an Economy