Answer:
if an economy is operating at less than full employment it is the recession situation
Step-by-step explanation:
The GDP gap can be defined as the difference between potential GDP and actual GDP when both are measured in real terms. When the economy is under a situation of recession, the GDP gap is positive, meaning the economy is operating at less than potential (and less than full employment, in the opinion of the Keynesian that the solution to a recession is expansionary fiscal policy, such as tax reduction to increase consumption and investment and direct increases in government spending, either of which would lead to shifting the aggregate demand curve to the right. For eg, if aggregate demand was originally at so that the economy was in recession, the correct policy would be for the government to shift aggregate demand to the right from where the economy would be at potential GDP and full employment