An economy in a recessionary gap will have. due to Select one: a. gradual decreases short-run aggregate supply; stick wages b. gradual increase short-run aggregate supply; sticky wages c. gradual decrease aggregate demand; lower incomes d. rapid increase aggregate demand; higher incomes

An economy in a recessionary gap will have. due to Select one: a. gradual decreases short-run aggregate supply; stick wages b. gradual increase short-run aggregate supply; sticky wages c. gradual decrease aggregate demand; lower incomes d. rapid increase aggregate demand; higher incomes

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 6PA

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An economy in a recessionary gap will have.
due to
Select one: a. gradual
decreases short-run aggregate supply; stick wages b. gradual increase short-run aggregate supply; sticky wages c.
gradual decrease aggregate demand; lower incomes d. rapid increase aggregate demand; higher incomes

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Step 1: Define the the Recessionary Gap:

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Step 3: Explain Incorrect Options:

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