Question:
What, and where, is a Negative Output Gap?
Author: go kysAnswer:
-This [Recesionary Gap] is the Difference between Actual Output [GDP] and Trend Output [Average Economic Growth] Acutal Output will be Below Trend Output -Happens in a Rescession when the Economy is performing Poorly - Resources not used fully - like Labour [Unemploymnet] -This also puts Downwards Pressure on Inflation [Demand is Falling and % Rates may be low]
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![-This [Recesionary Gap] is the Difference between Actual Output [GDP] and Trend Output [Average Economic Growth] Acutal Output will be Below Trend Output
-Happens in a Rescession when the Economy is performing Poorly - Resources not used fully - like Labour [Unemploymnet]
-This also puts Downwards Pressure on Inflation [Demand is Falling and % Rates may be low]](https://markdown.memory.com/eq_uploads/1110385/question_image_c308f061-f248-44f9-91fa-71f6e152e461.jpg)
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go kys