A Recessionary Gap Can Be Defined As

Multiple Choice

A recessionary gap can be defined as:

A) an economy that is operating above its full-employment capacity.
B) an economy that is operating at full-employment capacity.
C) the amount by which aggregate expenditures exceeds the aggregate expenditures level needed to generate equilibrium real GDP at full employment without inflation
D) the amount by which aggregate expenditures falls short of the level needed to generate equilibrium real GDP at full employment without inflation.