What is government failure? What will be an ideal ...

[B]

What is government failure?
 
  What will be an ideal response?

Question 2

What is the output gap? How does it change when the economy goes into recession?
 
  What will be an ideal response?

[heinisk01]

Answer to Question 1

Government failure occurs when the government becomes the tool of the rent seeker and the allocation of resources is made even less efficient by the intervention of government.

Answer to Question 2

The output gap equals the difference between real GDP and potential GDP. When the economy goes into a recession, the output gap becomes negative.

[B]

Thanks for the timely response, appreciate it

[jordangronback]

TYSM