Question

A recessionary gap is the gap between __________ and __________.
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**.