Which of the Following Is True of a Recessionary Gap

question 70

Multiple Choice

Which of the following is true of a recessionary gap?

• A)It develops when the expected price level is less than the actual price level.
• B)In the long run,this gap closes when resource suppliers negotiate lower resource payments.
• C)It measures the amount by which actual output is greater than the economy's potential output.
• D)In the long run,this gap closes when the short-run aggregate supply curve shifts rightward.
• E)In the long run,this gap closes when the aggregate demand curve shifts rightward.

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Definitions:

Delaying Action

A tactical or strategic decision to postpone an action or decision in order to gain more time, information, or advantage.

Withdrawal Mechanism

Psychological or physical strategies used by individuals to disengage or disconnect from stressful or uncomfortable situations.

Managing Interpersonal Conflict

The process of handling personal disagreements or disputes in a constructive and respectful manner.

Rationalization

The process of finding logical explanations for behaviors, decisions, or feelings that may otherwise appear irrational.