If the Economy Experiences a Recessionary Gap Then

Multiple Choice

If the economy experiences a recessionary gap then:

A) aggregate expenditures exceed the level of spending necessary to provide for full employment.
B) Keynesian economics would recommend a reduction in government spending or an increase in taxes.
C) Keynesian economics would recommend an increase in government spending or a decrease in taxes.
D) the equilibrium level of output and income is above full employment.