A Recessionary Gap Develops

question 91

Multiple Choice

A recessionary gap develops:

• A)when actual output exceeds potential output.
• B)when resource prices are "sticky" upward.
• C)only when the economy is in recession.
• D)only when GDP grows by more than 4 percent.
• E)only when unemployment exceeds its natural rate.

---

Definitions:

Niche Marketing

A targeted marketing strategy focusing on a specific portion of the market with unique preferences or requirements.

Specialized Needs

Particular requirements or conditions necessary for specific populations, activities, or processes, usually requiring customized solutions.

Higher Prices

Charging more for goods or services than the average market rate, often associated with premium quality or brand reputation.

Global Segmentation

The process of dividing a global market into distinct subgroups of consumers with common preferences or needs.