The ceiling represents the highest level of aggregate real output an economy can achieve during an expansion phase, corresponding to full employment.
The Classical Model is an economic theory which assumes that prices, wages, and interest rates are flexible and that markets will always reach equilibrium, resulting in full employment and output growth dependent on factor supply.
An exploration of full employment, where the labor market achieves a state where all individuals willing and able to work at prevailing wage rates can find employment.
A detailed exploration of the Full Employment National Income, its historical context, types, key events, explanations, models, importance, applicability, and more within the field of Keynesian Economics.
An economic situation where all available labor resources are being used in the most efficient way possible.
Understanding Potential Output: The economic maximum an economy can produce without causing inflation when all resources are fully employed.
The concept of Deflationary Gap describes the situation when Gross Domestic Product (GDP) is below its full-employment level, leading to unemployed resources and potentially falling prices.
A comprehensive exploration of Full Employment, an economic condition where all available labor resources are being used in the most efficient way possible.
A detailed explanation of the inflationary gap, its causes, consequences, and related economic concepts.
Neoclassical Economics is a school of economic theory that flourished from about 1890 until the advent of Keynesian Economics. It asserted that market forces always would lead to efficient allocation of resources and full employment.
An in-depth understanding of structural unemployment, which persists even during periods of full employment, due to mismatches between job seekers and job requirements.
A comprehensive guide to understanding the concept of an inflationary gap, its measurement, significance, and implications for an economy's GDP and potential GDP at full employment.
A thorough exploration of recessionary gaps, including their definition, underlying causes, real-world examples, and their impact on the economy.
