The actual output gap is difficult to determine.

Name: The actual output gap is difficult to determine.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

Determining the actual output gap is difficult because it requires accurately estimating potential output, which is a complex and ever-changing concept influenced by factors such as technology, demographics, and institutions. Additionally, data on actual output is subject to measurement errors and revisions. Therefore, any estimate of the output gap is a rough approximation at best.

The Actual Output Gap Is Difficult to Determine