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    Question

    The difference between actual gross domestic product and

    potential full-employment GDP, is called?
    A GDP Gap Correct Answer Incorrect Answer
    B Growth Potential Correct Answer Incorrect Answer
    C Inflationary gap Correct Answer Incorrect Answer
    D Potential GDP Correct Answer Incorrect Answer
    E Economic gap Correct Answer Incorrect Answer

    Solution

    An inflationary gap is a macroeconomic concept that describes the difference between the current level of real gross domestic product (GDP) and the anticipated GDP that would be experienced when an economy is at full employment, also referred to as the potential GDP.

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