The amount by which equilibrium real GDP exceeds full-employment GDP is known as

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An inflationary gap is the amount by which equilibrium real GDP exceeds full-employment GDP. This means that the economy is producing more than its maximum sustainable level, leading to inflationary pressures. Stagflation refers to a situation where there is both high inflation and high unemployment. A recessionary gap, on the other hand, is the amount by which equilibrium real GDP falls short of full-employment GDP. It represents an underutilization of resources in the economy, leading to unemployment and a slow-down in economic growth. Employment is a broad term that refers to the number of people who are working or seeking work in the economy.

The Amount by Which Equilibrium Real GDP Exceeds Full-Employment GDP