Topic Videos
Key Diagrams - The Output Gap
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 31 May 2022
In this short revision video we walk through the output gap diagram.
The output gap is a measure of the difference between actual output (Y) and estimated potential output (YP).
A positive output gap means GDP is above the long term trend which might be a sign of rising inflationary pressure
A negative output gap means GDP lies below potential output – this is often the result of an economic downturn which leaves an economy with spare capacity.
You might also like
Understanding the Economic Cycle
Study Notes

Twin Peaks for the UK Economy
19th October 2014

Six Key Charts on the UK Economy
24th October 2014
Price elasticity of supply (Revision Presentation)
Teaching PowerPoints
Macroeconomic Objectives and Macro Stability
Study Notes
Components of Aggregate Demand
Study Notes
Understanding the Accelerator Effect
Study Notes
Economic Cycle Revision Quiz
Quizzes & Activities