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. Output Gap

    An output gap is an economic measure of the difference between ...
  2. Real Gross Domestic Product (GDP)

    An inflation-adjusted measure that reflects the value of all ...
  3. Below Full Employment Equilibrium

    A macroeconomic term used to describe a situation where an economy's ...
  4. GDP Price Deflator

    An economic metric that accounts for inflation by converting ...
  5. Per Capita Gross Domestic Product

    Per capita GDP is a measure of the total output of a country ...
  6. Gapping

    Gapping is when a stock opens significantly above or below the ...
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  1. When do economists use real GDP instead of GDP?

    Learn about the purposes for which economists rely on real GDP. Find out how real GDP is calculated and how it is important ... Read Answer >>
  2. How much of an economy's performance is captured by real GPD?

    Learn about the economic information captured by real GDP. Find out how real and nominal GDP are constructed and the purposes ... Read Answer >>
  3. How can I use the rule of 70 to estimate a country's GDP growth?

    Find out about the rule of 70, what it is used for and how to use it to determine the number of years a country's GDP takes ... Read Answer >>
  4. Which countries are most productive in terms of GDP?

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  5. How do I implement a forex strategy when spotting a Runaway Gap Pattern?

    Read about some strategies to consider after spotting a runaway gap pattern in the forex market, including how to distinguish ... Read Answer >>
  6. Why does inflation increase with GDP growth?

    Examine the relationship between inflation and GDP, why GDP growth leads to higher prices and the effects of uncontrolled ... Read Answer >>
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