A recessionary gap occurs when ________ so that real GDP is ________ potential GDP
A) aggregate demand decreases; less than
B) aggregate supply decreases; less than
C) potential GDP decreases; greater than
D) aggregate demand increases; greater than
E) aggregate supply increases; less than
A
You might also like to view...
List three ways government can reduce depletion of an endangered resource. Which of these ways requires the least amount of management, monitoring, and bureaucracy?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) As a manager, one of your responsibilities is to avoid tacit collusion. 2) If a firm receives treble damages, they are being paid a monetary reward for reporting cartel activity. 3) All else equal, it is more profitable to produce a differentiated product rather than an identical product made by a rival firm. 4) As a manager of a firm that produces an identical product as your rival, it is economically profitable to compete on price. 5) As a manager in an oligopolistic market, it is critical to take into consideration your rivals' best responses to your decisions.