# Output gap (also often used in German; otherwise production gap)

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- Post ID: 590713
- Modified: 2023-07-25T21:12:55+00:00
- Language: en

## Definition

The difference, usually expressed as a percentage, between the gross domestic product on the one hand and the available production potential of an economy on the other (the amount by which a country's output, or gross national product, falls short of what it could be given its available resources). A positive output gap can indicate a possible overheating of the economy and thus an imminent rise in inflation, while a negative output gap points to spare capacity and possible disinflation. Therefore, the ECB pays close attention to this variable. - See pressure, disinflationary, output gap, two-pillar principle. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

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