AP Macroeconomics Question 16: Answer and Explanation

Test Information

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Question: 16

4. A recessionary gap exists when the short-run equilibrium level of real GDP

  • A. decreases over time
  • B. equals the full-employment level of real GDP
  • C. is above the full-employment level of real GDP
  • D. is below the full-employment level of real GDP
  • E. increases over time

Correct Answer: D

Explanation:

D A recessionary gap is when the equilibrium GDP is below full employment level. Therefore the answer is (D).