Okun gap


Difference between the potential GDP of an economy and the actual GDP. When the actual output is greater than the potential output it is referred to as an inflationary gap and the reverse is called a recessionary gap. Several factors contribute to this difference between the actual and potential GDP which include unemployment, money supply, etc.

Related Videos


Have a question about Okun gap? Ask for help in the
Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z