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Definition of 'Inflationary Gap'
A macroeconomic condition that describes the distance between the current level of real gross domestic product (GDP) and full employment (long run equilibrium) real GDP. The inflationary gap is so named because the relative increase in real GDP causes an economy to increase its consumption, which causes prices to rise in the long run.
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Investopedia explains 'Inflationary Gap'
According to macroeconomic theory, the goods market determines the level of real GDP, which is shown in the following relationship:
As illustrated above, an increase in consumption expenditure, investments, government expenditure or net exports will cause real GDP to rise in the short run.
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Search results for 'Inflationary Gap'
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http://stocks.investopedia.com/stock-analysis/2009/Defend-Against-Deflation-With-Gold-Short-ETFs-DGZ-DZZ0707.aspx
... that gap will likely be closed by a reversal in investor sentiment towards deflation,
not by improving economic fundamentals or inflationary conditions. ...
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http://financialedge.investopedia.com/financial-edge/1011/How-Social-Security-Increases-Will-Affect-Americans.aspx
... living adjustment (COLA) increase comes after a two year gap of benefit ... a smile,
current economic conditions might not create the inflationary environment that ...
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http://stocks.investopedia.com/stock-analysis/2010/Four-Affordable-Commodity-Stocks-AA-MTL-MRO-CHK1117.aspx
... 200-day moving average on November 2 and has since widened the gap. ... The Bottom Line
Inflationary fears compounded by quantitative easing have managed to drive ...
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http://stocks.investopedia.com/stock-analysis/2012/Buy-Suits-On-Lower-Unemployment-JOSB-MW-EXPR-GPS0102.aspx
... NYSE:EXPR) and Banana Republic of The Gap Inc ... On top of inflationary headwinds, the
better employment situation isn't assured yet, and wage growth has been very ...
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http://www.investopedia.com/articles/economics/09/upside-or-deflation.asp
... real estate that would not be in the market during an inflationary environment may ...
This may be why there is such a large gap between deflationary periods and ...
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http://www.investopedia.com/articles/stocks/11/risks-every-stock-faces.asp
... competition becoming increasingly technology savvy and the knowledge gap shrinking,
obsolescence ... Inflationary Risk and Interest Rate Risk These two risks can ...
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