d. The consequence of a negative GDP gap is thatsociety must forgo goods and services that were not produced because some resources were involuntarily idle.parents will not be able to afford to pay for their children to go away to university.Obecause it is not self-correcting only government intervention or new public policy can close the gap.interest rates will fall and as a result savings will also fall leading to lower investment and lower future GDP.

Gross Domestic Product (GDP) is a measure of the total value of goods and services produces within a…

d. The consequence of a negative GDP gap is that society must forgo goods and services that were not produced because some resources were involuntarily idle. parents will not be able to afford to pay for their children to go away to university. because it is not self-correcting only government intervention or new public policy can close the gap. interest rates will fall and as a result savings will also fall leading to lower investment and lower future GDP.

d. The consequence of a negative GDP gap is that society must forgo goods and services that were not produced because some resources were involuntarily idle. parents will not be able to afford to pay for their children to go away to university. because it is not self-correcting only government intervention or new public policy can close the gap. interest rates will fall and as a result savings will also fall leading to lower investment and lower future GDP.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter19: Measuring Economic Performance

Section: Chapter Questions

Problem 7P

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