For Policymakers the Problem with a Recessionary Gap Is ______

Multiple Choice

For policymakers the problem with a recessionary gap is ______ and the problem with an expansionary gap is _____.

A) a tendency for inflation to develop; wasted resources
B) wasted resources; a tendency for inflation to develop
C) an increase in cyclical unemployment; an increase in structural unemployment
D) an increase in structural unemployment; an increase in cyclical unemployment