Author Question: Which of the following statements about the GDP gap is not true? a. It widens during recessions and ... (Read 119 times)

JMatthes · **on:** Jun 30, 2018

Which of the following statements about the GDP gap is not true?
a. It widens during recessions and narrows down during expansions.
b. When an economy's GDP gap equals zero, it operates on its production possibilities curve.
c. It is a measure of output lost as a result of unemployment.
d. There are more goods and services available in an economy as its GDP gap widens.
e. It is equal to potential real GDP minus actual real GDP.

Question 2

Microeconomics is the branch of economics in which you study inflation and unemployment in the economy.
a. True
b. False
Indicate whether the statement is true or false