Inflationary Gap
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Inflationary Gap

A situation in which the real GDP (GDP adjusted for inflation) exceeds the potential for what the economy can actually produce. This occurs when demand for products exceeds the labor or other resources required to produce them. Ultimately, this leads to demand-pull inflation.

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Inflationary Gap (redirected from Inflationary Gaps)

Inflationary Gap
(redirected from Inflationary Gaps)