Dear all!
It is known that the product gap is defined as the difference between the actual product and the potential product.
How can we define the growth gap? And what difference can we make between the output gap and the growth gap?
Thanks,
How do you define “growth gap” in this context?
The difference in a country’s economic growth from one period to another. I mainly have doubts on this point.
That’s not a gap. Without a clear definition or reference it is impossible to tell.