IFT exam 1 Question 7 B

What i knew so far was when ST GDP is below trend, there is an output gap but here he is concluding output gap when GDP higher than trend GDP.

Second when consumer spending is higher ,inflation is higher he says there is already an output gap .( what i know when economy is in these condition , output gap is already over and there is inflationary pressure building and calls for contractionary policy).

Please explain if i am wrong

There are two types of output gaps: positive and negative.

What you’ve described here is a positive output gap so he is correct in saying there is an output gap.

With that understanding your second question should also be answered.