The Difference Between Real GDP and Potential GDP Is Known

question 176

Multiple Choice

The difference between real GDP and potential GDP is known as the:

• A) price gap.
• B) unemployment gap.
• C) output gap.
• D) budget deficit.

---

Definitions:

Net Cash

An accounting term that represents the amount of cash remaining after all operating, investing, and financing activities are accounted for in a given period.

Operating Activity

Transactions and events related to the principal revenue-generating activities of an entity.

Investing Activity

Financial actions related to the purchase and sale of long-term assets and investments not included in cash equivalents.

Financial Activity

Transactions or events that affect the equity or debt of a company, including investments, financing, and distributing dividends.