In most cases, the Fed can determine whether real and potential GDP are equal.

Name: In most cases, the Fed can determine whether real and potential GDP are equal.
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The Fed does not have the ability to directly determine whether real and potential GDP are equal. It can, however, use a variety of economic indicators and models to estimate the output gap (the difference between actual and potential GDP) and adjust its monetary policy accordingly.

In Most Cases, the Fed Can Determine Whether Real and Potential