A Recessionary Gap Occurs When

question 91

Multiple Choice

A recessionary gap occurs when

• A) the economy is at its long-run equilibrium.
• B) the short-run aggregate supply curve shifts rightward.
• C) government interferes with the economy.
• D) real GDP is less than potential GDP.

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Definitions:

Path-goal

A leadership theory that suggests leaders can adjust their behavior and strategies to satisfy their followers' needs, thereby enhancing performance and satisfaction.

Situational Approach

A leadership model suggesting that the most effective leadership style varies according to the situation or context.

Leader Behaviors

Actions and attitudes displayed by leaders that influence their group's performance, morale, and effectiveness.

Expectancy Theory

A motivational theory suggesting that individuals are likely to act in a certain way based on the expectation that the act will be followed by a desired outcome.