Which of the following is true when there is a recessionary gap?
A) Real output exceeds the natural level of real output.
B) Unemployment exceeds the natural rate of unemployment.
C) Employment exceeds full employment.
D) All of the above are true when there is a recessionary gap.
Correct Answer:
Verified
Q167: Neither positive nor negative supply shocks
A)Change AD.
B)Permanently
Q168: If the profit effect and misperception effect
Q169: If, due to rising demand, the price
Q170: Which of the following would lead to
Q171: If there was no profit effect or
Q173: When there is an inflationary gap:
A)Employment exceeds
Q174: If there was no misperception effect, but
Q175: Which of the following is not true
Q176: The LRAS curve is _ with real
Q177: If, due to rising demand, the price
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