GDP Gap


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GDP Gap

The economic growth that an economy would experience if all persons willing to work had jobs. The GDP gap represents growth that can never happen because the economy has not allocated jobs to all willing workers. This can occur for a number of reasons, including excessive government regulation and corporate fear for future earnings. See also: Unemployment rate, Full employment.
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Variable: 1990:QI- 1999:QI- 1990:QI- 1999:QI- Quarterly real GDP 1998:QIV 2010:QIV 1998:QIV 2010:QIV Gap (annualized, in %) Real GDP Gap (t-1) 0.
GDP gap = potential--actual real gross domestic product.
After decomposition of real GDP into cyclical fluctuations, we can find the correlation between real GDP gap, monetary indicator and fiscal policy indicators.
Scientist presented "The National Innovation System Concept" (1982) and defined the national innovation system as the network of institutions in both public and private sector, whose activities and interactions initiate, import, modify and disperse new technologies, but also stressed the need to take into account fluctuations of real GDP in the ratio with potential GDP, defined GDP gap indicator and drew attention to the fact that the economic imbalance of the equilibrium is based on the increased inflation, rising unemployment and related factors affecting the market.
The survey also asked whether the next WAG will be able to close Wales' GDP gap with the rest of the UK.
To compare the different business cycle patterns, we decompose real GDP into the sum of the GDP trend and the GDP gap.
Students of macroeconomic courses learn that for every 1 percent excess of the natural unemployment rate, a 2-3% GDP gap is predicted.
The 2011 budget draft submitted to parliament foresees a 7 per cent of GDP gap, compared to 7.
The rationale behind such fiscal measures derives from a Keynesian theory that government spending should be used to cover the GDP gap (the difference between potential and actual gross domestic product) under certain economic conditions.
9 percent last week, the revised GDP gap narrowed by 0.
The persistent negative GDP gap and the leu exchange rate dynamics were conducive to the decline in consumer price inflation.