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Answer to Question #38024 in Macroeconomics for raju
Question #38024
What is the inflationary gap? the output gap?
Expert's answer
An inflationary gap, in economics, is the amount by which the actual gross domestic product exceeds potential full-employment GDP.
The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP.
Check https://en.wikipedia.org/wiki/Output_gap for more info.
The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP.
Check https://en.wikipedia.org/wiki/Output_gap for more info.
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#340153 on Dec 2023
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