The language of output gaps - recessionary gaps and inflationary gaps - applies only to outcomes of demand shocks.

Name: The language of output gaps - recessionary gaps and inflationary gaps - applies only to outcomes of demand shocks.
Brand: Quizplus
Rating: 4.9 (40 reviews)

Question

Quizplus · Accepted Answer

Output gaps refer to the difference between actual and potential economic output, often resulting from demand shocks that cause the economy to deviate from its full capacity, leading to either recessionary or inflationary gaps.

The Language of Output Gaps - Recessionary Gaps and Inflationary