When the short run GDP and the long run GDP coincide, then there exists an output gap in the economy.

Name: When the short run GDP and the long run GDP coincide, then there exists an output gap in the economy.
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If short run GDP and long run GDP coincide, then there is no output gap in the economy. An output gap exists when there is a difference between actual GDP (short run) and potential GDP (long run).

When the Short Run GDP and the Long Run GDP