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Output Gap
(redirected from output gaps)

   Also found in: Encyclopedia 0.01 sec.
Output Gap
The difference between an economy's GDP and its potential GDP. That is, the output gap measures GDP against what the GDP ought to be if the economy were using its resources efficiently. A positive output gap occurs when the GDP exceeds the efficient GDP, usually through the over-utilization of resources, while a negative output gap occurs when the GDP undershoots the potential GDP. Most analysts believe that a positive output gap leads to inflation.


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These include growing unemployment lines, rising protectionism and still-large output gaps," World Bank president Robert Zoellick said on the eve of the talks.
These include growing unemployment lines, rising protectionism and still-large output gaps," World Bank president Robert Zoellick said on the eve of the talks.
G], wherein, as in the preferred model, output gaps are constructed by assuming that the level of potential output is 2.
 
 
 
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