A Recessionary Gap Occurs When

question 18

Multiple Choice

A recessionary gap occurs when

• A) the short-run aggregate supply curve shifts rightward.
• B) real GDP is less than potential GDP.
• C) the economy is at its long-run equilibrium.
• D) government interferes with the economy.

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Definitions:

Wire-Wound

Referring to a type of resistor or inductor where wire is wound around a core to create electrical resistance or inductance.

Variable Resistor

A resistor whose resistance value can be varied between its minimum and maximum values.

Ohmic Value

The resistance value of an electrical component measured in ohms, indicating how much it resists the flow of electric current.

Tolerance

The allowable deviation in the value of a component or system from its specified value, often expressed as a percentage.