If potential GDP is $990 billion and actual GDP is $990 billion, the output gap is:
A)zero.
B)positive.
C)negative.
D)increasing over time.

Name: If potential GDP is $990 billion and actual GDP is $990 billion, the output gap is: A)zero. B)positive. C)negative. D)increasing over time.
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Question

Quizplus · Accepted Answer

The output gap is calculated as potential GDP - actual GDP. In this scenario, potential and actual GDP are both $990 billion, meaning there is no difference between the two values and no output gap.

If Potential GDP Is $990 Billion and Actual GDP Is