When there is a recessionary gap: a. Real output exceeds the ...

[dollx]

When there is a recessionary gap:
 a. Real output exceeds the natural level of real output.
  b. Real output equals the natural level of real output.
 c. Real output is less than the natural level of real output.
  d. Any of the above is possible.

Question 2

The emphasis on the greater incentives to produce, created by lower taxes, has come to be known as:
 a. the trickle-down economics.
  b. the supply-side economics.
  c. the paradox of thrift.
  d. the permanent income hypothesis.
  e. monetarism.

[aburgess]

Answer to Question 1

c

Answer to Question 2

b