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:

Member

A term often used in engineering to refer to an individual component of a structure, machine, or mechanism that serves a specific function.

Back Weld

A welding technique where a weld is applied on the opposite side of a previously welded joint to ensure strength and integrity.