output gap

What is output gap?

output gap definition and meaning on Finance terms:
The difference between the actual and potential levels of output of an economy, expressed as a percentage of potential output. Potential output is the level of output that can be achieved when the factors of production are utilised at non-inflationary levels. <

 

reference: https://www.ecb.europa.eu/home/glossary/html/index.en.html

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