Recessionary Gap Definition

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An inexhaustible good nature is one of the most precious gifts of heaven, spreading itself like oil over the troubled sea of thought, and keeping the mind smooth and equable in the roughest weather.

— Washington Irving

A recessionary gap is a macroeconomic term which describes an economy operating at a level below its full-employment equilibrium. Under a recessionary gap condition, the level of real gross domestic product (GDP) is lower than the level of full employment, which puts downward pressure on prices in the long run.

CFA® Level I Economics - Macroeconomic Equilibrium: Recessionary Gap, Inflationary Gap, Stagflation

Title: CFA® Level I Economics - Macroeconomic Equilibrium: Recessionary Gap, Inflationary Gap, Stagflation
Runtime: 8:15
View count: 1,725
Date posted: Aug 9, 2021

Recessionary Gap (Definition) | Effects | Top Causes of Recessionary Gap

Title: Recessionary Gap (Definition) | Effects | Top Causes of Recessionary Gap
Runtime: 9:27
View count: 1,482
Date posted: Jun 30, 2019

Macro Unit 3, Question 10- Recessionary Gap and Classical Economists

Title: Macro Unit 3, Question 10- Recessionary Gap and Classical Economists
Runtime: 2:44
View count: 11,978
Date posted: Dec 12, 2013

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