The output gap is the
A) percentage deviation of real GDP from potential GDP.
B) difference between actual inflation and core inflation.
C) difference in graduation levels between high school and college.
D) percentage increase in the economic growth rate of real GDP.

Question

Quizplus · Accepted Answer

The output gap is defined as the percentage deviation of real GDP from potential GDP, reflecting the difference between the economy's actual output and its maximum potential output.

The Output Gap Is the