When an economy's actual output differs from its potential at some point in time,we say that it is experiencing:
A)an output gap.
B)a recession.
C)a boom.
D)None of these statements is true.

Question

Quizplus · Accepted Answer

An output gap is the difference between an economy's actual output and its potential output. This can occur during a recession when actual output is lower than potential output, or during a boom when actual output exceeds potential output.

When an Economy's Actual Output Differs from Its Potential at Some