A recessionary gap occurs when
A. real GDP is less than potential GDP.
B. nominal GDP is less than potential GDP.
C. high rates of inflation occur.
D. nominal GDP is greater than potential GDP.
Answer:A
A recessionary gap occurs when
A. real GDP is less than potential GDP. B. nominal GDP is less than potential GDP. C. high rates of inflation occur. D. nominal GDP is greater than potential GDP.