A Recessionary Gap Results When

question 49

Multiple Choice

A recessionary gap results when

• A) aggregate demand is below the level consistent with full employment.
• B) aggregate demand is above the level consistent with full employment.
• C) aggregate supply and aggregate demand are not in short-run equilibrium.
• D) aggregate supply decreases.

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Definitions:

Teammates

Individuals who are part of the same team, working together towards a common goal or participating in the same activity.

Coercive

Relating to or using force or threats to persuade someone to do something or to achieve compliance.

Deduct

To subtract or take away an amount or part from a total.

Salary

Regular payment made by an employer to an employee, usually monthly or biweekly, for their professional services.