In a Keynesian cross diagram, what name is given to the distance between an output level that is below potential GDP and the level of potential GDP?
A. expenditure-output
B. inflationary gap
C. recessionary gap
D. national income (Y)
Answer:C
In a Keynesian cross diagram, what name is given to the distance between an output level that is below potential GDP and the level of potential GDP?
A. expenditure-output B. inflationary gap C. recessionary gap D. national income (Y)
Explanation: Type: Multiple Choice Category: Remember