If the equilibrium level of real Gross Domestic Product (GDP) is less than the full-employment real Gross Domestic Product (GDP) consistent with the position of the economy's long-run aggregate supply (LRAS) curve, then the difference between full-employment real Gross Domestic Product (GDP) and current equilibrium real Gross Domestic Product (GDP) is
A. an aggregate demand shock.
B. a recessionary gap.
C. an aggregate supply shock.
D. an inflationary gap.
Answer: B
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