RECESSIONARY GAPS USUALLY LEAD TO

Jul 19, 18
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  • https://www.economicshelp.org/blog/glossary/output-gap/CachedNov 20, 2017 . A negative output gap will typically cause low inflation or even deflation. A
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  • https://economictimes.indiatimes.com/definition/recessionary-gapCachedSimilarGenerally, a recessionary gap occurs when an economy is approaching recession. So it is also associated with business cycle contraction. Recession is a slowdown or a massive contraction in economic activities. A significant fall in spending generally leads to a recession.
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  • https://www.investopedia.com/terms/r/recessionarygap.aspCachedAlso known as a contractionary gap, the recessionary gap accounts for the difference between a country's potential GDP at full employment and the current employment level within the economy. Often, these gaps are evident during times of economic downturn and are associated with higher unemployment numbers.
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