if the economy is in a recessionary gap a. real gdp is greater than natural real...
if the economy is in a recessionary gap
a. real gdp is greater than natural real gdp
b. real gdp is equal to natural real gdp
c. real gdp is less than natural real gdp
d. the (actual)unemployment rate is less than the natural unemployment rate.
d. a and d
Homework Answers
Ans. Option c
Recessionary gap is when actual real GDP is less than the full employment level of real GDP. At this level of real GDP, the unemployment rate ismore than the natural rate of unemployment.
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if the economy is in a recessionary gap
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Suppose the economy is self-regulating and characterized by a recessionary gap. In the long run: Real...
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