Reference no: EM131380640
1-A recessionary gap occurs when
A. All of these are true.
B. actual real GDP is above potential real GDP.
C. the long run equilibrium is less than the short run equilibrium.
D. the current output level is below the full employment level of production.
2-Crowding out refers to the
A.possibility that investment and consumption may decrease if government borrowing causes an increase in interest rates.
B.higher rate of unemployment caused by a minimum wage.
C.decrease in production of capital goods required if a productively efficient economy wants more consumption goods.
D.All of these.
3-In the aggregate supply and demand? model, short run equilibrium is
A.at the intersection between long run aggregate supply and aggregate demand.
B.when actual real GDP equals potential real GDP.
C.at the intersection between short run aggregate supply and aggregate demand.
D.when potential real GDP equals the full employment level of output.
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Recessionary gap occurs when
: A recessionary gap occurs when. Crowding out refers to the. In the aggregate supply and demand? model, short run equilibrium is.
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