2.5.2 - Output Gaps
0.0(0)
Studied by 0 people
Call Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt PlayCard Sorting
1/5
There's no tags or description
Looks like no tags are added yet.
Last updated 5:28 PM on 4/16/26
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No analytics yet
Send a link to your students to track their progress
6 Terms
1
New cards
What does a negative output gap occur?
A negative output gap occurs when the economy is not operating at its full capacity
2
New cards
What usually causes this?
This is usually caused when there is a lot of spare capacity in the economy, such as high levels of unemployment
3
New cards
What does this look like on a diagram?
4
New cards
What is positive output gap?
A positive output gap occurs when an economy operates beyond it’s maximum capacity in the short run
5
New cards
How can this be possible?
Occur when factories and workers are operating overtime, which is inherently extremely unsustainable
6
New cards
What does this look like on a diagram?
