CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

A recessionary gap is more likely to be observed when ______
A. real GDP is above potential GDP.
B. employment is above full-employment equilibrium.
C. real GDP is below potential GDP.
Explanation: A below full-employment equilibrium is a macro-economic equilibrium in which potential GDP exceeds real GDP. The amount by which potential GDP exceeds real GDP is called the recessionary gap.

User Contributed Comments 0

You need to log in first to add your comment.