In macroeconomics,what is the output gap? A)the measure of output that could have been produced if the economy were fully employed B)the dead-weight loss of inflation C)the difference between nominal and real output D)the percentage change in real GDP E)the difference between Y and Y^*

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The output gap is the difference between the actual output of an economy (often measured as actual GDP) and its potential output (the level of output that could be produced if the economy were operating at full capacity, with full employment). This is often represented symbolically in economic models, and "Y" typically represents actual output while "YS" or similar symbols might represent potential output, with other symbols representing adjustments or specific conditions. The notation "Y^*." is not standard, but the correct answer is the one that refers to the difference between actual and potential output, which is the essence of the output gap concept.

In Macroeconomics,what Is the Output Gap