找回密碼

想起密碼去登錄

綁定手機(jī)號(hào)

依據(jù)《網(wǎng)絡(luò)安全法》為保障您
相關(guān)功能的正常使用，賬號(hào)需綁定手機(jī)

密碼登錄

微信登錄

微信掃描二維碼登錄“幫考網(wǎng)”

還沒賬號(hào)？立即注冊(cè)

微信登錄

短信登錄
密碼登錄

登錄即代表同意《用戶協(xié)議》和《隱私政策》

還沒賬號(hào)？立即注冊(cè)

Equilibrium GDP and Prices - Inflationary Gap

幫考網(wǎng)校2020-08-05 18:41:11

Equilibrium GDP is the level of output at which the aggregate demand (AD) equals the aggregate supply (AS) in an economy. It represents the level of economic activity that is consistent with stable prices and full employment. When the economy is operating at equilibrium GDP, there is no inflationary or recessionary gap.

However, if the aggregate demand exceeds the aggregate supply at the equilibrium level of GDP, the economy experiences an inflationary gap. This means that there is excess demand in the economy, leading to upward pressure on prices. Inflationary gap occurs when the economy is producing at a level above its potential output.

The inflationary gap is also known as the output gap, and it represents the difference between the actual output of the economy and its potential output. The potential output is the level of output that the economy can produce at full employment, using all its resources efficiently.

To close the inflationary gap, the government can use contractionary fiscal policy measures such as increasing taxes or reducing government spending. The central bank can also use monetary policy measures such as increasing interest rates to reduce aggregate demand and bring it back to the equilibrium level.

In summary, equilibrium GDP represents the level of output at which the economy is operating at full employment and stable prices. An inflationary gap occurs when the economy is producing above its potential output, leading to excess demand and upward pressure on prices. To close the inflationary gap, the government and central bank can use contractionary fiscal and monetary policy measures.