the output gap is defined as
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- ᴛʜᴇ ᴏᴜᴛᴘᴜᴛ ɢᴀᴘ ɪs ᴀɴ ᴇᴄᴏɴᴏᴍɪᴄ ᴍᴇᴀsᴜʀᴇ ᴏғ ᴛʜᴇ ᴅɪғғᴇʀᴇɴᴄᴇ ʙᴇᴛᴡᴇᴇɴ ᴛʜᴇ ᴀᴄᴛᴜᴀʟ ᴏᴜᴛᴘᴜᴛ ᴏғ ᴀɴ ᴇᴄᴏɴᴏᴍʏ ᴀɴᴅ ɪᴛs ᴘᴏᴛᴇɴᴛɪᴀʟ ᴏᴜᴛᴘᴜᴛ.
- ᴀ ɴᴇɢᴀᴛɪᴠᴇ ᴏᴜᴛᴘᴜᴛ ɢᴀᴘ ᴏᴄᴄᴜʀs ᴡʜᴇɴ ᴀᴄᴛᴜᴀʟ ᴏᴜᴛᴘᴜᴛ ɪs ʟᴇss ᴛʜᴀɴ ᴡʜᴀᴛ ᴀɴ ᴇᴄᴏɴᴏᴍʏ ᴄᴏᴜʟᴅ ᴘʀᴏᴅᴜᴄᴇ ᴀᴛ ғᴜʟʟ ᴄᴀᴘᴀᴄɪᴛʏ.
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