Multiple Choice
A recessionary gap most likely comes from
A) a negative demand shock.
B) a negative supply shock.
C) a positive demand shock.
D) a positive supply shock.
E) OPEC.
Correct Answer:

Verified
Correct Answer:
Verified
Q187: A rise in the price level decreases
Q188: A positive supply shock from falling input
Q189: The language of output gaps - recessionary
Q190: Aggregate demand increases when government increases taxes.
Q191: According to the law of short-run aggregate
Q193: Falling input prices increase aggregate quantity supplied.
Q194: There is a positive demand shock when<br>A)
Q195: For the "Yes - Markets Self-Adjust" camp,
Q196: In short-run macroeconomic equilibrium<br>A) short-run aggregate supply
Q197: Figure 6.3.1 <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB1013/.jpg" alt="Figure 6.3.1