When an economy experiences a recession, it is producing -potential Real GDP -less than potential Real...

Question

Question

When an economy experiences a recession, it is producing

-potential Real GDP

-less than potential Real GDP

-less or more than potential REAL GDP. it depends on the cause of the recession.

Answer 1

Answer #1

When in a recession the economy is producing below the potential level. the answer is "B". it will always below the potential when in a recession.

Answer 2

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