Ask Question
BusinessBusiness
18 February, 15:22

When a recessionary gap occurs,

a. Real output exceeds the natural level of output, and unemployment exceeds its natural rate

b. Real output exceeds the natural level of output, and unemployment is less than its natural rate.

c. Real output is less than the natural level of output, and unemployment exceeds its natural rate.

d. Real output is less than the natural level of output, and unemployment is less than its natural rate.

+5
Answers (1)
  1. 18 February, 15:47
    0
    Answer: Real output is less than the natural level of output, and unemployment exceeds its natural rate. (C)

    Explanation:

    The recessionary gap is a term in macroeconomic which describes an economy that is operating at a level which is below its full-employment equilibrium. The recessionary gap is also known as a contractionary gap, it is the difference between the potential gross domestic product of a country at full employment and its current employment level which puts pressure on the price in the long run.

    The recessionary gap is seen during economic downturn and usually associated with increase in unemployment.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “When a recessionary gap occurs, a. Real output exceeds the natural level of output, and unemployment exceeds its natural rate b. Real ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
If you're 18, and want to go take the test for your permit would you have to wait the 6months to go do you license?
Answers (1)
Last month you introduced a new product to the market. Consumer d emand has been overwhelming and it appears that strong demand will exist over the long-term situation, management should consider the option to A. Suspend B. Expand C. Abandon D.
Answers (1)
Some credit card companies are making credit scores available to all of their customers on their monthly statements. What impact would you expect to see as a result of this change?
Answers (1)
Chase, Marla, and Enrique have been operating a chain of self-service laundries as a general partnership for many years. Marla declares bankruptcy. In most states, Marla's bankruptcy will: a. cause the partnership to declare bankruptcy. b.
Answers (1)
An advertisement emphasizes that if a consumer uses a certain deodorant he or she will not offend other people and will not cause problems in the workplace because of bad body odor.
Answers (1)
New Questions in Business
Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be $2.05 per share. Hornberger has a return on equity of 11.00%. What percentage of its earnings does Hornberger plow back into the firm?
Answers (1)
A tip of $10 is best for which kind of service? A. a mover who delivers furniture to your new home B. a valet who parks your car at a restaurant C. a waiter at a fast-food restaurant
Answers (2)
Sunland Company manufactures and sells high-priced motorcycles. The Engine Division produces and sells engines to other motorcycle companies and internally to the Production Division.
Answers (1)
Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has identified eight activity cost pools.
Answers (1)
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar.
Answers (1)
Home » Business » When a recessionary gap occurs, a. Real output exceeds the natural level of output, and unemployment exceeds its natural rate b. Real output exceeds the natural level of output, and unemployment is less than its natural rate. c.
Sign Up Forgot Password?