A recessionary gap exists when potential GDP
A. falls short of equilibrium GDP.
B. exceeds equilibrium GDP.
C. equals equilibrium GDP.
D. inflation leads to economic disequilibrium.
Answer: B
Economics
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The present value of an asset and the rate of interest
a. are not related b. are related inversely c. cannot change in opposite directions d. are equivalent e. are directly related
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If 40 Russian rubles = $1 U.S.,
A. 1 ruble = $.025 B. 1 U.S. cent = 4 rubles C. 40 U.S. cents = 100 rubles D. $4 = 120 rubles
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