The figure given below represents the leakages and injections of an economy.
Figure 10.6

-In Figure 10.6, if 0L is the potential level of real GDP, then KL represents:

Name: The figure given below represents the leakages and injections of an economy. Figure 10.6 -In Figure 10.6, if 0L is the potential level of real GDP, then KL represents:
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Question

The figure given below represents the leakages and injections of an economy.
Figure 10.6
 
-In Figure 10.6, if 0L is the potential level of real GDP, then KL represents:

Quizplus · Accepted Answer

KL represents the GDP gap, which is the difference between the potential level of real GDP (0L) and the actual level of real GDP.

The Figure Given Below Represents the Leakages and Injections of an Economy