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

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

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter18: Introduction To Macroeconomics: Unemployment, Inflation, And Economic Fluctuations

Section: Chapter Questions

Problem 11P

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Question

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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