The business cycle (also called the trade cycle) refers to the natural ups and downs of an economy
Tag: output gap
output gap
The output gap measures the difference between an economy’s actual production (Actual GDP) and its potential output (Potential
negative output gap
A negative output gap happens when a country’s actual economic production is lower than its potential output. This
positive output gap
A positive output gap happens when a country’s actual economic production is higher than its potential output. This