In Keynesian economic theory, a recessionary gap causes a depletion of inventories. occurs if total output is less than aggregate demand. is the amount by which the rate of actual spending falls short of full-employment GDP. is the amount by which the rate of actual spending exceeds full-employment GDP.
In Keynesian economic theory, a recessionary gap causes a depletion of inventories. occurs if total output is less than aggregate demand. is the amount by which the rate of actual spending falls short of full-employment GDP. is the amount by which the rate of actual spending exceeds full-employment GDP.
Chapter21: Fiscal Policy
Section: Chapter Questions
Problem 4SQ
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- In Keynesian economic theory, a recessionary gap
- causes a depletion of inventories.
- occurs if total output is less than aggregate
demand . - is the amount by which the rate of actual spending falls short of full-employment
GDP . - is the amount by which the rate of actual spending exceeds full-employment GDP.
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