GDP Gap

What Does GDP Gap Mean?
The forfeited output of a country's economy resulting from the failure to create sufficient jobs for all those willing to work.

Investopedia explains GDP Gap
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.

Related Terms

Below Full-Employment Equilibrium
Economics
Frictional Unemployment
Genuine Progress Indicator - GPI
Inflation
Natural Unemployment
Okun's Law
Phillips Curve
Recessionary Gap
Structural Unemployment
More Related Terms

Related Links

Macroeconomic Analysis - From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
What You Need To Know About The Employment Report - This widely watched indicator of economic well-being also directly influences the market.
Current Account Deficits: Government Investment Or Irresponsibility? - Deficit can be a sign of trouble for some countries, and of health for others. Find out what it means when more funds are exiting than entering a nation.
GDP Data - U.S. GDP data from Economagic.com

Rate this Term: Your Rating: Overall Rating: Vote Now!