A recessionary gap occurs when
A. the short-run aggregate supply curve shifts rightward.
B. real GDP is less than potential GDP.
C. the economy is at its long-run equilibrium.
D. government interferes with the economy.
Answer:B
A recessionary gap occurs when
A. the short-run aggregate supply curve shifts rightward. B. real GDP is less than potential GDP. C. the economy is at its long-run equilibrium. D. government interferes with the economy.