19. Mention which of the two output gap occurs in the following cases: recessionary gap or...

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19. Mention which of the two output gap occurs in the following cases: recessionary gap or inflationary gap? a. the economy i

business economics

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Answer 1

Answer #1

a. Recessionary gap. It is a positive GDP gap where actual GDP is less than potential GDP.

b. Inflationary gap. It is a negative GDP gap where actual is greater than potential GDP.

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Answer 2

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