In Macroland,potential output equals $100 trillion and the natural rate of unemployment is 4%.If the actual unemployment rate is 5%,then the output gap equals

Question

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The output gap is the difference between potential output and actual output. Potential output is $100 trillion, and the natural rate of unemployment is 4%. The actual unemployment rate is 5%, so the output gap is - $2 trillion.

In Macroland,potential Output Equals $100 Trillion and the Natural Rate