An output (recessionary) gap occurs when: Import tariffs reduce consumption B. Actual output (GDP) exceeds potential output. Taxes on corporate… | Cheap Nursing Papers
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An output (recessionary) gap occurs when: Import tariffs reduce consumption B. Actual output (GDP) exceeds potential output. Taxes on corporate…

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An output (recessionary) gap occurs when:

A. Import tariffs reduce consumption

B. Actual output (GDP) exceeds potential output.

C. Taxes on corporate profits undermine incentives to invest.

D. Actual output (GDP) falls below potential output.

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