A Recessionary Gap Is the Amount by Which

question 54

Multiple Choice

A recessionary gap is the amount by which

• A)potential GDP exceeds real GDP.
• B)demand will increase to achieve full employment at a given price level.
• C)the supply curve must increase to achieve full employment at a given price level.
• D)the price level must adjust to achieve full employment.
• E)real GDP exceeds potential GDP.

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Definitions:

Inventories

The raw materials, work-in-process products, and finished goods that are considered to be the portion of a business's assets that are ready or will be ready for sale.

Professional Development

Activities that improve and increase capabilities of professionals through the acquisition of skills and knowledge, often related to their career.

Human Capital

The combined abilities, expertise, and experiences owned by a person or a group, regarded in relation to their worth or expense to a company or nation.

Capital Goods

Long-lasting goods used in the production of other goods or services, such as machinery, buildings, and equipment.