Recessionary gap arises when
A. inventory stock falls.
B. government spending increases.
C. when the general price level increases.
D. there is less spending than desired.
Answer: D
You might also like to view...
Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
A) Allocative efficiency is achieved only in the short run. Productive efficiency is achieved only in the long run. B) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved in the short run and the long run. C) Allocative efficiency is achieved in the short run and the long run. Productive efficiency is achieved only in the long run. D) Allocative efficiency is achieved only in the long run. Productive efficiency is achieved only in the short run.
Policymakers often use the natural rate of unemployment as a basis in policy formulations
Indicate whether the statement is true or false
The long run is a period long enough so that one of the firm's commitments ends
a. True b. False Indicate whether the statement is true or false
In 1991, the European Union began the process of forming the
A. first international trade agreement in the world. B. largest free-trade zone in the world. C. only continental military force in the world. D. first unified currency in the world.