Skip to main content

My Courses

Calculators AI Tools Study Prep Blog Study Prep Home

19. Monetary Policy

19. Monetary Policy / Taylor Rule / Problem 11

Problem 11

If the potential GDP is \$22 trillion and the current GDP is \$21 trillion, what is the output gap?

A

-\$0.5 trillion

B

-\$1 trillion

C

\$1 trillion

D

\$0 trillion