A Recessionary Gap Means That Short-Run Macroeconomic Equilibrium GDP

question 223

Multiple Choice

A recessionary gap means that short-run macroeconomic equilibrium GDP

• A) is less than full-employment GDP.
• B) equals full-employment GDP.
• C) is more than full-employment GDP.
• D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.

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Definitions:

Exported Goods

Items that are sent from one country to another for the purpose of trade or sale.

Sovereign Immunity

The legal doctrine that prevents the government or its subdivisions, departments, and agencies from being sued without its consent.

Foreign Sovereign Immunities Act

A U.S. law that limits the circumstances under which a foreign sovereign nation (its political subdivisions, agencies, and instrumentalities) can be sued in U.S. courts.

Codified

Organized and arranged into a systematic code or system, often referring to laws and regulations.