If Real GDP Is $200 Billion but Potential GDP Is

question 87

True/False

If real GDP is $200 billion but potential GDP is $160 billion, the output gap is + $40 billion.

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Definitions:

Automobile Transportation

The transportation of passengers or goods by vehicles designed for travel on roads.

Seatbelt

A safety device designed to secure the occupant of a vehicle against harmful movement that may result during a collision or a sudden stop.

Gasoline

A petroleum-derived liquid mixture, primarily used as fuel in internal combustion engines.

Dynamic Inefficiencies

Inefficiencies in an economy or market that arise over time, often due to poor investment decisions or policies that hinder adaptation to new technologies or market conditions.