Home / Assignment Help / It is evident that the nation is experiencing a recessionary gap when potential output is less than aggregate output. potential output is decreasing at a rate greater than aggregate output is increasing potential output is decreasing. aggregate output is less than potential output. aggregate output is greater than potential output.

It is evident that the nation is experiencing a recessionary gap when potential output is less than aggregate output. potential output is decreasing at a rate greater than aggregate output is increasing potential output is decreasing. aggregate output is less than potential output. aggregate output is greater than potential output.

Answered by answersmine AT 22/10/2019 – 04:27 AM

A recessionary gap is condition wherein the economy is operating below the full capacity of its employment level. An indication that an economy is experiencing a recessionary gap is when 
aggregate output is less than potential output
The answer is the 4th option.

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