A recessionary gap measures the :
(1) Amount by which autonomous spending is below to that needed to achieve a full employment equilibrium.
(2) Amount by which aggregate spending exceeds to that needed to achieve full employment.
(3) Difference in real output between the classical model and the keynesian depression model.
(4) Extent of paradox of thrift.
Answer: (1) Amount by which autonomous spending is below to that needed to achieve a full employment equilibrium.
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