A Recessionary Gap Means That the Level of Real GDP

question 87

Multiple Choice

A recessionary gap means that the level of real GDP at the short-run macroeconomic equilibrium

• A) is less than full-employment GDP.
• B) equals full-employment GDP.
• C) is more than full-employment GDP.
• D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.

---

Definitions:

Transmission

The process of conveying information, signals, or messages from one person or place to another, through verbal, non-verbal, or technological means.

Mum Effect

The tendency to avoid communicating unfavourable news to others.

Decoding Problems

The process of interpreting and breaking down complex problems into manageable parts for better understanding and solution.

Non-verbal Communication

The process of conveying a message without the use of words, through gestures, facial expressions, and body language.