Real GDP is $97b per year and natural real GDP is $100b. Measured as a percentage, what is the real GDP gap?

Question

Real GDP is $97b per year and natural real GDP is $100b. Measured as a percentage, what is the real GDP gap?

Answer 1

So, the question is intended to get some particular answer 10 points without effort!.

For the benefit of the uninitiated:

Real GDP gap =  Real GDP- Natural Real GDP

So, percentage real GDP gap =

(Real GDP gap =  Real GDP- Natural Real GDP)*100 / Natural Real GDP, or,

($97b-$100b)*100/ $100b = -300/100= -3.

So the answer is 3%

Answer 2

Real GDP gap= -3%