What does the GDP gap measure?

Name: What does the GDP gap measure?
Brand: Quizplus
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Quizplus · Accepted Answer

The GDP gap measures the difference between potential GDP and actual GDP. Potential GDP is the level of GDP that would be produced if all resources were used at their normal rate. Actual GDP is the level of GDP that is actually produced. The gap between the two measures can give an indication of how strong or weak an economy is performing, as well as indicating the presence or absence of inflationary pressures.

What Does the GDP Gap Measure