Positive output gap
What Positive output gap means in Economics A-Level, as defined for AQA.
Definitions of Positive output gap
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Reference: AQA
Occurs when actual real GDP exceeds the sustainable productive potential, often during an economic boom, with resources over-utilised and demand-pull inflationary pressures.
Occurs when actual GDP exceeds potential GDP, meaning the economy operates beyond sustainable capacity.
Topics that use Positive output gap
- Economic growth and the economic cycle (AQA A-Level)
- Possible conflicts between macroeconomic policy objectives (AQA A-Level)
Related terms
- Inflationary pressures
- Negative output gap
- Aggregate demand
- Aggregate supply
- Asset price bubbles
- Cyclical unemployment
- Demand-side policies
- Economic fluctuations
Using Positive output gap in the exam
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