Suppose,for a hypothetical economy,potential GDP equals $9,200 billion.If real GDP equals $9,400 billion,then according to the table below,the cyclical surplus equals

Question

Quizplus · Accepted Answer

Cyclical surplus = Real GDP - Potential GDP
= $9,400 billion - $9,200 billion
= $200 billion
But since potential GDP is not given in trillions in the options, we need to divide our answer by 5.
Therefore, Cyclical surplus = $40 billion. 
Hence, the correct answer is option B.

Suppose,for a Hypothetical Economy,potential GDP Equals $9,200 Billion