If the real GDP in a country is less than the potential GDP

If the real GDP in a country is less than the potential GDP, that country must be in recession.

Solution

It is true. If real GDP is less than ptential GDP it means economy is operating at underemployment level. It is working in recession. There is a downfall in the economy and therefore, it is not abl ot utilize its resources to the fulest. There is lack of demand in themarket and hence aggregate supply is not at its optimum level.