A Recessionary Gap Occurs When ________ So That Real GDP

question 77

Multiple Choice

A recessionary gap occurs when ________ so that real GDP is ________ potential GDP.

• A) aggregate supply decreases; less than
• B) aggregate demand increases; greater than
• C) aggregate supply increases; less than
• D) aggregate demand decreases; less than
• E) potential GDP decreases; greater than

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Definitions:

μ

The symbol representing the mean (average) of a population in statistics.

T-Statistic

Re-defined: A value calculated from sample data during a t-test, used to assess the significance of the difference between two sample means.

α

Represents the level of significance in hypothesis testing, typically set at 0.05 or 5%.

P > .05

A statistical expression indicating that the probability of the observed data, or something more extreme, if the null hypothesis is true, is greater than 5%.