The forfeited output of a country's economy resulting from the failure to create sufficient jobs for all those willing to work.


A GDP gap denotes the amount of production that is irretrievably lost. The potential for higher production levels is wasted because there aren't enough jobs supplied.

  1. Structural Unemployment

    A longer-lasting form of unemployment caused by fundamental shifts in an economy. ...
  2. Poverty Gap

    The average shortfall of the total population from the poverty line. This measurement ...
  3. Okun's Law

    The relationship between an economy's unemployment rate and its gross national ...
  4. Natural Unemployment

    The lowest rate of unemployment that an economy can sustain over the long run. ...
  5. Phillips Curve

    An economic concept developed by A. W. Phillips stating that inflation and unemployment ...
  6. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered ...
  7. Below Full Employment Equilibrium

    A macroeconomic term used to describe a situation where an economy's short-run ...
  8. Recessionary Gap

    A term routed in macroeconomic theory that summarizes the situation where an ...
  9. Inflation

    The rate at which the general level of prices for goods and services is rising, ...
  10. Frictional Unemployment

    Unemployment that is always present in the economy, resulting from temporary ...
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