An equilibrium point beyond a potential GDP is termed as

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An equilibrium point beyond potential GDP indicates that the economy is operating above its full capacity, causing demand to exceed supply. This leads to a rise in prices and an increase in inflationary pressures, hence the term inflationary gap. A deflationary gap, on the other hand, indicates the economy is operating below its potential GDP, while a recessionary gap refers to a situation where the economy is experiencing a recession with high unemployment rates. An acceleration gap is not a commonly used term in macroeconomics.

An Equilibrium Point Beyond a Potential GDP Is Termed as