A recessionary gap occurs when the ______ is less than the ______.

a. aggregate demand; aggregate supply
b. potential output; actual output
c. aggregate supply; aggregate demand
d. actual output; potential output


d. actual output; potential output

Economics

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In the loanable funds market, the supply comes from

A) saving, the government budget surplus and international borrowing. B) only saving and the government budget surplus. C) only saving. D) only the government budget surplus and international borrowing.

Economics

If firms sell exactly what they expected to sell, all of the following will be true except

A) aggregate expenditure will be greater than GDP. B) there is no unplanned change in inventories. C) aggregate expenditure will be equal to GDP. D) inventories will not change, and GDP and employment will remain stable.

Economics

The National Restaurant Association states that the restaurant industry has an economic effect of more than $1.7 trillion annually in the United States,

with every dollar spent in restaurants generating an estimated total of $2.05 in spending in the economy. This indicates that the spending multiplier for the restaurant industry is equal to A) 1.21. B) 1.70. C) 2.05. D) 4.25.

Economics

Which of the following has a more elastic demand?

a. a hamburger b. an automobile c. breakfast cereal d. microwave oven

Economics