When full employment GDP = equilibrium GDP there

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Full employment GDP is the level of output that would be produced if all available resources were used efficiently, usually corresponding to the long-run potential output of an economy. Equilibrium GDP occurs when aggregate demand is equal to the supply of goods and services, so there is no excess demand or supply in the economy. Thus, when full employment GDP = equilibrium GDP, there is no inflationary gap (where aggregate demand exceeds the full employment level of output, leading to upward pressure on prices) or deflationary gap (where aggregate demand falls short of the full employment level of output, leading to downward pressure on prices).

When Full Employment GDP = Equilibrium GDP There