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GDP Gap Calculator
Calculate the output gap between actual and potential GDP for economic analysis
GDP Gap Calculation
GDP Gap Results
+0.00%
GDP Gap (Output Gap)
Formula: (Y - Y*) / Y* × 100
Example: US Economy Analysis
Economic Scenario
2020 (Recession): Actual GDP = $20.95T, Potential GDP = $22.06T
2021 (Recovery): Actual GDP = $22.99T, Potential GDP = $22.38T
GDP Gap Calculations
2020: ($20.95T - $22.06T) / $22.06T × 100 = -5.03% (Recessionary gap)
2021: ($22.99T - $22.38T) / $22.38T × 100 = +2.72% (Inflationary gap)
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Key Concepts
Y
Actual GDP
Current economic output level
Y*
Potential GDP
Maximum sustainable output capacity
Understanding the GDP Gap
What is the GDP Gap?
The GDP gap measures the percentage difference between actual GDP and potential GDP. It indicates whether an economy is operating above or below its full capacity.
GDP Gap = (Y - Y*) / Y* × 100
- Y: Actual GDP
- Y*: Potential GDP
Types of GDP Gaps
Inflationary Gap (Positive)
- • Economy operating above capacity
- • High employment, inflation pressure
Recessionary Gap (Negative)
- • Economy operating below capacity
- • High unemployment, low inflation
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