GDP Gap

AAA

DEFINITION of 'GDP Gap'

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
  1. Structural Unemployment

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

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

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

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

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

    A metric used to measure the economic growth of a country. It ...
Related Articles
  1. What You Need To Know About The Employment ...
    Economics

    What You Need To Know About The Employment ...

  2. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  3. Current Account Deficits: Government ...
    Budgeting

    Current Account Deficits: Government ...

  4. Leveraging Leverage For Bigger Profits
    Home & Auto

    Leveraging Leverage For Bigger Profits

comments powered by Disqus
Hot Definitions
  1. Last In, First Out - LIFO

    An asset-management and valuation method that assumes that assets produced or acquired last are the ones that are used, sold ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively attempt to influence and change the price of a stock. ...
  3. Elasticity

    A measure of a variable's sensitivity to a change in another variable. In economics, elasticity refers the degree to which ...
  4. Tangible Common Equity - TCE

    A measure of a company's capital, which is used to evaluate a financial institution's ability to deal with potential losses. ...
  5. Yield To Maturity (YTM)

    The rate of return anticipated on a bond if held until the maturity date. YTM is considered a long-term bond yield expressed ...
  6. Net Present Value Of Growth Opportunities - NPVGO

    A calculation of the net present value of all future cash flows involved with an additional acquisition, or potential acquisition. ...
Trading Center