A failure in coordination between workers and employers is most likely to cause an expansionary gap.

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Vaughn Donovan · Accepted Answer

Final Answer : False, Explanation :  A failure in coordination between workers and employers is not directly related to an expansionary gap, which is a macroeconomic concept referring to the difference between actual and potential output in an economy. An expansionary gap can arise due to various factors such as increased aggregate demand or supply constraints. However, a lack of coordination between workers and employers can lead to inefficiencies, decreased productivity, and labor market frictions, which can ultimately affect the overall performance of the economy.

A failure in coordination between workers and employers is most likely to cause an expansionary gap.

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