A Recessionary Output Gap Implies That

question 104

Multiple Choice

A recessionary output gap implies that

• A)the demand for all factor services will be relatively low.
• B)the intersection of AD and AS occurs where real GDP exceeds potential output.
• C)the economy's resources are being used at more than their normal capacity.
• D)there is upward pressure on wages.
• E)there is excess demand for most factors of production.

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