What is the GDP gap

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter12: Business Cycles And Unemployment
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What is the GDP gap

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The Gross Domestic Product or the GDP is the summation of money value of all the final goods and services produced within the political boundary of an economy in a financial year. The money value of the final goods are only used for the calculation of the GDP. The sale of the second-hand goods in the economy, sale of the inventory are not included in the calculation of the GDP in the economy.

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