In Macroland,potential GDP equals $20 billion and actual GDP equals $19.2 billion.Macroland has a(n)_________ gap equal to ________% of potential GDP.

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Quizplus · Accepted Answer

Macroland has a recessionary gap because actual GDP is less than potential GDP. The gap is calculated as (Potential GDP - Actual GDP) / Potential GDP * 100 = ($20 billion - $19.2 billion) / $20 billion * 100 = 4.0%.

In Macroland,potential GDP Equals $20 Billion and Actual GDP Equals