Asked by Megan kibby on Apr 28, 2024
Verified
When there is a deflationary gap _______ GDP is greater than _______ GDP.
Deflationary Gap
A situation in which the total spending in an economy is lower than the necessary amount to achieve full employment or potential output.
GDP
Gross Domestic Product, the total value of all goods and services produced within a country over a specified period.
- Grasp the concept of inflationary and recessionary gaps and how fiscal policy can adjust them.
Verified Answer
PB
Learning Objectives
- Grasp the concept of inflationary and recessionary gaps and how fiscal policy can adjust them.