# Answer to Question #59604 in Macroeconomics for ali

Question #59604

AS/AD Model.

AD: P = 90 - 3Y.

AS: P = 15.

PO: Y = 30.

What is the Recessionary Gap??

AD: P = 90 - 3Y.

AS: P = 15.

PO: Y = 30.

What is the Recessionary Gap??

Expert's answer

Find macroeconomic equilibrium, when total demand=total supply

AD = AS

P=90-3Y=15

Y (actual GDP) =25

When actual GDP is below the potential GDP the economy has negative output gap, also called as recessionary gap.

Recessionary Gap = Potential GDP-Actual GDP=30-25=5

We received negative gap, also called as recessionary gap.

The recessionary gap equals 5.

AD = AS

P=90-3Y=15

Y (actual GDP) =25

When actual GDP is below the potential GDP the economy has negative output gap, also called as recessionary gap.

Recessionary Gap = Potential GDP-Actual GDP=30-25=5

We received negative gap, also called as recessionary gap.

The recessionary gap equals 5.

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