If Real GDP Is $200 Billion but Potential GDP Is

question 126

True/False

If real GDP is $200 billion but potential GDP is $260 billion, the output gap is + $60 billion.

---

Definitions:

Bioecological Model

A theoretical model that explores the complex interactions between individuals and their environment, highlighting the multiple layers of influence on human development.

Individual

A single, distinct person distinguished from others by unique characteristics, thoughts, feelings, and actions.

Family

A social unit or group of people related by blood (consanguinity), marriage (affinity), or adoption, bound by shared values, traditions, culture, and love, often living together and supporting one another.

Community

A group of people living in the same place or having a particular characteristic in common, or a feeling of fellowship with others.