What is OKUN GAP?

The gap between the potential and actual GDP of a country. If the actual output is higher, the gap is referred to as an inflationary gap. If it is lower, it is known as a recessionary gap. Factors such as unemployment and money supply often contribute to the Okun gap.

More On This Topic



Link to This Definition
Did you find this definition of OKUN GAP helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary