Output gap

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What Wikipedia says

The GDP gap or the output gap is the difference between actual GDP or actual output and potential GDP, in an attempt to identify the current economic position over the business cycle. The measure of output gap is largely used in macroeconomic policy (in particular in the context of EU fiscal rules compliance).

Excerpt from the Wikipedia article “Output gap”, under the CC BY-SA 4.0 license. Read the article on Wikipedia

Image: Congressional Budget Office, Public domain, via Wikimedia Commons.