Economics · Macroeconomics
The output gap is a useful concept for macroeconomic policy because it compares actual output with:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1external borrowing capacity
- 2the level of output the economy can sustain without excessive inflationary or recessionary pressure✓
- 3only agricultural output in a normal monsoon year
- 4tax revenue projections
Correct answer
the level of output the economy can sustain without excessive inflationary or recessionary pressure
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