A recessionary gap is the gap between __________ and __________.

Question

A. long-run disequilibrium; short-run equilibrium
B. long-run equilibrium; short-run disequilibrium
C. long-run; short-run disequilibrium
D. long-run aggregate supply; short-run equilibrium

Answer 1

A recessionary gap is the gap between long-run aggregate supply and short-run equilibrium.

So, the correct answer is: D. long-run aggregate supply; short-run equilibrium.