Multiple Choice
Graphically, a recessionary gap is measured as the:
A) difference between the actual price level and the equilibrium price level.
B) difference between actual GDP and potential output.
C) vertical distance between aggregate demand and aggregate supply at actual real GDP.
D) vertical distance between aggregate demand and aggregate supply at potential output.
Correct Answer:

Verified
Correct Answer:
Verified
Q258: A recessionary gap occurs when:<br>A) potential output
Q259: Which factor is one of the reasons
Q260: Use the following to answer questions:<br>Figure: An
Q261: Use the following to answer questions:<br>Figure: An
Q262: Aggregate demand will increase if:<br>A) the public
Q264: In the long run, wages and prices
Q265: The aggregate supply curve shows the relationship
Q266: Use the following to answer questions:<br>Figure: Policy
Q267: If the price level falls by 10%,
Q268: The short-run aggregate supply curve may shift