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Definition of 'Recessionary Gap'
A term routed in macroeconomic theory that summarizes the situation where an economy is operating at below its full-employment equilibrium. Under this condition, the level of real gross domestic product (GDP) is currently lower then it is at full-employment, which puts downward pressure on prices in the long run.
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Investopedia explains 'Recessionary Gap'
A recessionary gap happens when an economy is falling into a recession, which is defined as a lower real level of income (as measured by real GDP) then the full-employment level. An economic recession can happen in a number of ways, including a higher nominal exchange rate, which will reduce net exports and domestic income, and a large reduction in consumer expenditure or investment due to a decrease in take home pay by workers.
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Search results for 'Recessionary Gap'
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http://stocks.investopedia.com/stock-analysis/2010/Is-Winn-Dixie-A-Long-Term-Winner-WINN-KR-GAP-RDS.A-BGP-SWY0222.aspx
... Meanwhile, at A & P (NYSE: GAP) they've hired a new CEO, Ron Marshall, a turnaround
specialist ... Safeway's earnings have been edging up after its recessionary dip ...
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http://stocks.investopedia.com/stock-analysis/2009/5-Reasons-Iconix-Still-Makes-Sense-ICON0226.aspx
... Tickers in this Article: CHKE, GAP, ICON, TGT. Last March, I wrote a positive analysis
about Iconix Group (Nasdaq:ICON), the licensing company run by Neil Cole ...
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http://stocks.investopedia.com/stock-analysis/2009/One-Lulu-Of-A-Deal-LULU-COH-BKE-SBUX-GPS0303.aspx
... Wrecking Moves Sales Per Square Feet Still Sweet Despite a recessionary economy,
Lululemon ... The Bottom Line On Margins.) Bottom Line Retail giant Gap (NYSE:GPS ...
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