Thank you for visiting If the actual real GDP is 13 trillion and potential GDP is 9 trillion what is the output gap Select one A 4 trillion and. This page is designed to guide you through key points and clear explanations related to the topic at hand. We aim to make your learning experience smooth, insightful, and informative. Dive in and discover the answers you're looking for!
Answer :
The output gap is $4 trillion and it is positive.
The output gap is calculated by subtracting potential GDP from actual real GDP. In this case, the actual real GDP is $13 trillion and the potential GDP is $9 trillion. When we subtract $9 trillion from $13 trillion, we get an output gap of $4 trillion.
The positive output gap indicates that the economy is currently operating above its potential level. This suggests that there is an excess in the production of goods and services compared to what the economy can sustainably produce in the long run. This can be an indication of inflationary pressures in the economy, as the increased production may lead to higher demand for resources and potentially result in higher prices.
A positive output gap can also imply that the economy is in a phase of expansion or recovery, with higher levels of employment and increased economic activity. However, it is important to monitor this situation closely, as sustained high levels of output beyond the economy's potential can lead to overheating and economic imbalances.
Learn more about GDP.
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