When the nation's economy is producing less output in the form of goods and services, generating lower incomes and creating fewer jobs, which is underperforming relative to its capability, it is referred to as:
A) A low GDP gap
B) A high GDP gap
C) A negative GDP gap
D) A and C above
E) None of the above

Question

Quizplus · Accepted Answer

A negative GDP gap refers to the situation where the economy is underperforming, producing less output, generating lower incomes, and creating fewer jobs than its potential or capability. This term accurately describes the economic condition mentioned.

When the Nation's Economy Is Producing Less Output in the Form