A Recessionary Gap

question 37

Multiple Choice

A recessionary gap:

• A) is of little consequence in a capitalist economy.
• B) represents actual physical output lost.
• C) implies an equilibrium level of output less than the full-employment level.
• D) will automatically close, according to the Keynesian model.

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Definitions:

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear different in length because of their background cues, demonstrating depth perception.

Retinal Disparity

The slight difference in images perceived by the left and right eyes, which contributes to depth perception.

Linear Perspective

A technique in art and photography that creates the illusion of depth and distance by converging parallel lines towards a single vanishing point.

Interposition

A visual cue in depth perception where one object partially blocks another, indicating the former is closer to the viewer.