The amount by which equilibrium real GDP exceeds full-employment GDP is known as

a. stagflation.
b. employment.
c. a recessionary gap.
d. an inflationary gap.


d

Economics

You might also like to view...

Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.

A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower

Economics

Define the fertility rate and the mortality rate

What will be an ideal response?

Economics

One implication of an empirical investigation of the Marshall-Lerner condition is that, in the ________, a real ________ in a nation's currency is likely to ________ the country's current account balance

A) long-run; depreciation; improve B) short-run; depreciation; improve C) long-run; appreciation; improve D) short-run; appreciation; improve E) short-run but not the long-run; appreciation; improve

Economics

Today, the share of international trade in U.S. GDP is

A) almost 0 percent. B) about 10 percent. C) close to 30 percent. D) more than 99 percent.

Economics