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Question
If equilibrium level of real Gross Domestic Product (GDP) is less than the full -employment real Gross Domestic Product (GDP) consistent with the position of the economyʹs long -run aggregate supply (LRAS) curve, then the difference between full -employment real Gross Domestic Product (GDP) and current equilibrium real Gross Domestic Product (GDP) is
A) an aggregate demand shock.
B) an aggregate supply shock.
C) a recessionary gap. D) an inflationary gap.
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Q:
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Why?
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