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Economics A Level (DONEEEEEEE)

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Question:

What, and where, is a Negative Output Gap?

Author: eric_galvao



Answer:

-This [Recesionary Gap] is the Difference between Actual Output [GDP] and Trend Output [Average Economic Growth] Acutal Output will be Below Trend Output -Happens in a Rescession when the Economy is performing Poorly - Resources not used fully - like Labour [Unemploymnet] -This also puts Downwards Pressure on Inflation [Demand is Falling and % Rates may be low]


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-This [Recesionary Gap] is the Difference between Actual Output [GDP] and Trend Output [Average Economic Growth] Acutal Output will be Below Trend Output
-Happens in a Rescession when the Economy is performing Poorly - Resources not used fully - like Labour [Unemploymnet] 
-This also puts Downwards Pressure on Inflation [Demand is Falling and % Rates may be low]
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