A recessionary gap occurs in the economy when
A) Aggregate demand is in the depression or Keynesian range of the aggregate supply curve.
B) Aggregate demand is less than potential GDP.
C) Aggregate demand is less than full employment output.
D) None of the above.
Answer: C
Economics
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The Board of Governors consists of seven members elected by the public every four years.
a. true b. false
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Data from most industrialized countries show that countries with high investment rates (as a percentage of GDP) tend to be countries
A. with the highest rates of inflation. B. with the most unequal income distribution. C. with high rates of economic growth. D. with the lowest rate of national saving.
Economics