If the Economy Is in Equilibrium with Real GDP Less

question 140

Multiple Choice

If the economy is in equilibrium with real GDP less than potential GDP,there is ________ gap,and a fiscal policy that ________ is appropriate.

• A)a recessionary;increases potential GDP
• B)an inflationary;decreases aggregate demand
• C)an inflationary;increases aggregate demand
• D)a recessionary;increases aggregate demand
• E)a recessionary;decreases aggregate demand

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Definitions:

Infant Son

A male child in the earliest period of life, typically before he begins to walk or talk.

Pounds

A unit of weight commonly used in the United States and the British Commonwealth, equal to 0.453592 kilograms.

Calories

Units of energy used to measure the energy content in food and beverages.

Obesity

A medical condition characterized by excessive body fat that presents health risks, including cardiovascular diseases, diabetes, and hypertension.