The GDP gap is:
A) the product of the potential real GDP and the equilibrium level of real GDP.
B) the distance between the current level of real gross domestic product and full employment real GDP.
C) the difference between potential real GDP and the equilibrium level of real GDP.
D) the difference between the present value of all of government's projected financial obligations and the present value of all projected future tax and other receipts.
E) the difference between the actual output of an economy and its potential output.

Question

Quizplus · Accepted Answer

The Answer of The GDP gap is:
A) the product of the potential real GDP and the equilibrium level of real GDP.
B) the distance between the current level of real gross domestic product and full employment real GDP.
C) the difference between potential real GDP and the equilibrium level of real GDP.
D) the difference between the present value of all of government's projected financial obligations and the present value of all projected future tax and other receipts.
E) the difference between the actual output of an economy and its potential output.

The GDP Gap Is