Self-Test 3. What is a recessionary gap an inflationary gap
{"Image DocumentName": "Self-Test 3. What is a recessionary gap? an inflationary gap?", "Image ImageDescription": "A recessionary gap exists if the economy is producing a Real GDP level that is less than Natural Real GDP. An inflationary gap exists if the economy is producing a Real GDP level that is more than Natural Real GDP. 4. What is the state of the labor market when the economy is in a recessionary gap? in an inflationary gap? When the economy is in a recessionary gap, the labor market has a surplus. When the economy is in an inflationary gap, there is a shortage in the labor market. 5. What is the classical position on prices and wages? Prices and wages are flexible; they move up and down in response to market conditions.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}