Economy, asked by piyushazad32, 1 month ago

what is GDP gap ? Explain why & when an
economy has recessionary and
inflationary gap?

Answers

Answered by snithyashree20k

Answer:

A recessionary gap corresponds to a positive GDP gap where actual GDP is less than potential, while an inflationary gap corresponds to a negative GDP gap where actual GDP is greater than potential.

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what is GDP gap ? Explain why & when an economy has recessionary and inflationary gap?

Answers

what is GDP gap ? Explain why & when an
economy has recessionary and
inflationary gap?