For real and potential GDP to be equal, the budget surplus has to be zero.

Name: For real and potential GDP to be equal, the budget surplus has to be zero.
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Quizplus · Accepted Answer

The equality between real and potential GDP (known as full employment GDP) is not directly related to the budget surplus, which is the difference between government revenues and expenses. It is possible to have a zero budget surplus with a gap between real and potential GDP, and vice versa.

For Real and Potential GDP to Be Equal, the Budget