The Output Gap Measures the Amount by Which

question 14

Multiple Choice

The output gap measures the amount by which

• A) nominal GDP exceeds real GDP.
• B) actual GDP exceeds potential GDP.
• C) potential GDP exceeds actual GDP.
• D) actual GDP exceeds national income.
• E) real GDP exceeds nominal GDP.

---

Definitions:

Value Chain

A business model that describes the full range of activities needed to create a product or service, from raw materials to final delivery to consumers.