Solved: What is an output gap in the hypothetical economy, Macroeconomics

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What is an output gap in the hypothetical economy

Problem

Suppose that actual output is $120 billion and potential (full-employment) output is $156 billion. What is an output gap in this hypothetical economy? Based on your estimate of the output gap, would you expect the unemployment level to be higher or lower than usual?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Macroeconomics: What is an output gap in the hypothetical economy

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