If potential GDP for the third quarter of 2013 = $20.4 billion,and the deviation from potential GDP for the third quarter of 2013 = $1.6 billion,then real GDP for the third quarter of 2013 equals

Question

Quizplus · Accepted Answer

Potential GDP is the level of output an economy can produce when it is operating at full employment and capacity. The deviation from potential GDP is the difference between actual GDP and potential GDP. Therefore, if potential GDP for the third quarter of 2013 is $20.4 billion and the deviation is $1.6 billion, then actual (real) GDP for the third quarter of 2013 can be calculated as:

Real GDP = Potential GDP + Deviation
Real GDP = $20.4 billion + $1.6 billion
Real GDP = $22 billion

If Potential GDP for the Third Quarter of 2013 =