A Negative GDP Gap Can Be Caused by Either a Decrease

question 25

True/False

A negative GDP gap can be caused by either a decrease in aggregate demand or a decrease in
aggregate supply.

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Definitions:

Motivation

Refers to the processes that initiate, guide, and maintain goal-oriented behaviors.

Expectation

The belief or anticipation that something will happen or be the case in the future.

Autokinetic Illusion

A visual perception where a stationary point of light appears to move in a dark room due to small involuntary eye movements.

Stroboscopic Movement

An optical illusion wherein continuous motion is perceived from a series of rapidly displayed static images, as seen in movies or animations.