If potential GDP is $330 billion and there is a positive GDP gap of $30 billion, actual GDP is
A) $300 billion.
B) $30 billion.
C) $360 billion.
D) $630 billion.

Question

Quizplus · Accepted Answer

The positive GDP gap means that actual GDP is below potential GDP. To find the actual GDP, we add the positive GDP gap to potential GDP: $330 billion + $30 billion = $360 billion. Therefore, the correct answer is C.

If Potential GDP Is $330 Billion and There Is a Positive