An ... is the difference between the actual level of real GDP and its estimated long term value (the trend rate of growth)
Output gap
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A ... output gap is when the economy is producing above its long term trend growth rates and at this point it is producing beyond its PPF, which can happen in the short run
Positive
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A .. output gap is when the economy is producing below its long term trend growth rate and at this point, the economy is producing within its PPF and working with spare capacity
Negative
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Positive output gaps are also known as ...
Booms
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Negative output gaps are also known as ...
Recessions
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Other cards in this set
Card 2
Front
A ... output gap is when the economy is producing above its long term trend growth rates and at this point it is producing beyond its PPF, which can happen in the short run
Back
Positive
Card 3
Front
A .. output gap is when the economy is producing below its long term trend growth rate and at this point, the economy is producing within its PPF and working with spare capacity
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