The difference between the economy's potential output and its actual output relative to its potential output at a point in time is called the:
A)budget deficit.
B)trade deficit.
C)output gap.
D)full-employment rate.

Question

Quizplus · Accepted Answer

The ''output gap'' is the difference between the economy's actual output and its potential output, relative to potential output, at a point in time.

The Difference Between the Economy's Potential Output and Its Actual