Which of the following statements accurately describe the implications of a recessionary gap in Zeta's economy? Select all that apply.

A recessionary gap occurs when an economy is producing less than its potential output, meaning there are not enough jobs or goods being created. This usually leads to higher unemployment rates, as businesses may cut back on hiring or lay off workers due to lower demand for products and services. For example, if Zeta's economy has a recessionary gap, many people may struggle to find jobs, and companies might see their sales decline, leading them to produce less. Additionally, this gap can result in lower consumer spending, as people have less money and confidence to buy things. Overall, a recessionary gap indicates that the economy is not working at its best, which can have negative effects on both individuals and businesses.