Which of the Following Would Be Evidence That a Recessionary

question 151

Multiple Choice

Which of the following would be evidence that a recessionary gap exists?  

• A) rapid deflation during a period in which plant capacity utilization is below average 
• B) steady price level, and a 5 percent unemployment rate 
• C) less help-wanted advertising than usual, and a lower consumer price index than expected 
• D) markedly higher inflation, and the TSX at record levels

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Definitions:

Amtrak

The National Railroad Passenger Corporation, offering intercity passenger train service in the United States.

Publicly Owned

Pertains to assets, properties, or businesses that are owned and operated by governmental entities.

Private Company

A business entity owned by private individuals or entities and is not traded publicly on the stock market.

Natural Monopoly

A market condition where due to high infrastructure costs or significant barriers to entry, a single company can supply a product or service more efficiently than any potential competitor.