When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from and the government policy to eliminate this gap will the price level. real GDP and to A. an inflationary gap; increase; decrease B. a recessionary gap; decrease; decrease C. a recessionary gap; decrease; increase D. an inflationary gap; decrease; increase O E. a recessionary gap; increase; increase

When the macroeconomic equilibrium is such that real GDP is less than potential real GDP, the economy is suffering from and the government policy to eliminate this gap will the price level. real GDP and to A. an inflationary gap; increase; decrease B. a recessionary gap; decrease; decrease C. a recessionary gap; decrease; increase D. an inflationary gap; decrease; increase O E. a recessionary gap; increase; increase

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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