If potential GDP is $330 billion and there is a positive GDP gap of $30 billion,real GDP is:

Question

Quizplus · Accepted Answer

Potential GDP is the maximum output an economy can produce when operating at full employment, and it is given as $330 billion. 
Positive GDP gap is the difference between actual real GDP and potential GDP, and it is given as $30 billion.

Therefore, we can find the real GDP by adding the positive GDP gap to potential GDP: 
Real GDP = Potential GDP + Positive GDP gap 
Real GDP = $330 billion + $30 billion 
Real GDP = $360 billion

Hence, the correct answer is C) $360 billion.

If Potential GDP Is $330 Billion and There Is a Positive