When a recessionary gap exists, actual output______ potential output and the rate of inflation will tend to ____. a. is less than; decrease b. is less than; increase c. exceeds; decrease d.equals; remain the same e.exceeds; increase

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Chapter17: The Short-run Trade-off Between Inflation And Unemployment
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When a recessionary gap exists, actual output______ potential output and the rate of inflation will tend to ____.

a. is less than; decrease

b. is less than; increase

c. exceeds; decrease

d.equals; remain the same

e.exceeds; increase

 

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