If potential GDP for the fourth quarter of 2012 = $58.5 billion,and real GDP for the fourth quarter of 2012 = $53.7 billion,then the output gap was

Name: If potential GDP for the fourth quarter of 2012 = $58.5 billion,and real GDP for the fourth quarter of 2012 = $53.7 billion,then the output gap was
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Question

Quizplus · Accepted Answer

Output gap is calculated as (potential GDP - real GDP) / potential GDP * 100%

Using the given values, (58.5 - 53.7) / 58.5 * 100% = 8.2%

Therefore, the output gap is 8.2%, which is option B.

If Potential GDP for the Fourth Quarter of 2012 =