If real GDP is $200 billion and the inflationary gap is $50 billion, potential GDP is $150 billion.

Name: If real GDP is $200 billion and the inflationary gap is $50 billion, potential GDP is $150 billion.
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The inflationary gap is the difference between real GDP and potential GDP. In this case, the inflationary gap is $50 billion, and real GDP is $200 billion. Therefore, potential GDP must be $200 billion - $50 billion = $150 billion.

If Real GDP Is $200 Billion and the Inflationary Gap