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Question
A recessionary gap is the amount by which
A) total planned real expenditures exceed total planned production in the long run.
B) the short-run equilibrium level nominal GDP is above the short-run real GDP.
C) the short-run equilibrium level nominal GDP is below the short-run real GDP.
D) the short-run equilibrium level of real GDP is below the full-employment level of real GDP.
Answer
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