A Recessionary Output Gap Is Defined to Be When

question 70

Multiple Choice

A recessionary output gap is defined to be when:

• A) equilibrium aggregate expenditure is below full employment GDP.
• B) equilibrium aggregate expenditure is equal to full employment GDP.
• C) equilibrium aggregate expenditure is above full employment GDP.
• D) government spending is insufficient causing a gap in GDP.

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Definitions:

Antifreeze

A substance added to liquids, such as the water in a vehicle's radiator, to lower the freezing point and prevent it from freezing.

IUPAC Name

The systematic name assigned to a chemical substance, following rules established by the International Union of Pure and Applied Chemistry (IUPAC).

Thiol

Thiol is an organic compound containing a sulfhydryl (-SH) group attached to a carbon atom.

IUPAC Name

The systematic naming of chemical substances as per the rules established by the International Union of Pure and Applied Chemistry.