Recessionary gap

Examples of Recessionary gap in the following topics:

• Macroeconomic Factors Influencing the Interest Rate

  • The GDP gap or the output gap is (yt - y*t).
  • If this calculation yields a positive number, it is called an "inflationary gap" and indicates the growth of aggregate demand is outpacing the growth of aggregate supply (or high level of employment), possibly creating inflation, signaling an increase in interest rates made by the Central Bank; if the calculation yields a negative number it is called a "recessionary gap," which is accompanied by a low employment rate, possibly signifying deflation and a reduction in interest rates.

• Expansionary Versus Contractionary Fiscal Policy

  • In instances of recession, government spending does not have to make up for the entire output gap.
  • In addition to changes in spending, the government can also close recessionary gaps by decreasing income taxes, which increases aggregate demand and real GDP, which in turn increases prices.
  • Conversely, to close an expansionary gap, the government would increase income taxes, which decreases aggregate demand, the real GDP, and then prices.

• Global Impacts

  • In December 2007, the U.S. officially fell into an 18-month long recessionary period of negative GDP growth (over two consecutive quarters).
  • This recessionary period spread rapidly around the map, creating a global recession in Q3 and Q4 in 2008 and Q1 of 2009 (defined as a contraction in global GDP growth during that time) as is represented in this figure .
  • To provide additional context to the global adverse effects of the sub-prime mortgage crisis, of 65 countries that record and report GDP only 11 escaped a recessionary period between 2006 and today.
  • Another indirect global impact that occurred as a result of the economic collapse is political instability, primarily due to the inability of developed nations to pursue social welfare investments and global poverty reduction processes during recessionary times.

• Using the Yield Curve to Estimate Interest Rates in the Future

  • In fact, each of the recessionary periods since 1970 have demonstrated an inverted yield curve when subjected to Financial Stress Test just prior to that recessionary period.

• Gap Junctions

  • Gap junctions are also called communicating junctions, macula communicans, or nexuses. 
  • The number of gap junctions shared between two cells can vary as well.
  • The channels in a gap junction aren’t always open. 
  • Gap junctions are found in many places throughout the body. 
  • Gap junctions are responsible for electrochemical and metabolic coupling.

• The Gap Model

  • The Service Quality Model, also known as the GAP Model, was developed in 1985.
  • Gap between consumer expectation and management perception: This gap arises when the management or service provider does not correctly perceive what the customer wants or needs.
  • Gap between service quality specification and service delivery: This gap may arise in situations pertaining to the service personnel.
  • Gap between expected service and experienced service: This gap arises when the consumer misinterprets the service quality.
  • The diagram shows the different gaps in the model, including the Knowledge Gap discussed here.

• Learning the Gender Gap

  • This implies that the gender gap stems from social, rather than biological, origins.
  • In order to determine whether the gender gap is a result of implicit or explicit discrimination, we can look at the adjusted and unadjusted wage gap.
  • The remaining part of the raw wage gap that cannot be explained by variables that are thought to influence pay is then referred to as the adjusted gender pay gap and may be explicitly discriminatory.
  • The total wage gap in the United States is 20.4 percent.
  • This PSA by the European Union illustrates the gender pay gap in Europe.

• The RATER Model

  • Gap 1: The management perception gap, or the difference between the service customers expect and management's perception of customer expectations.
  • Gap 2: The quality specification gap.
  • Gap 3: The service delivery gap.
  • Gap 4: The market communication gap.
  • Gap 5: The perceived service quality gap.

• Gaps in the Fossil Record

  • Romer's gap is an example of an apparent gap in the tetrapod fossil record used in the study of evolutionary biology.
  • These gaps represent periods from which no relevant fossils have been found.
  • Romer's gap is named after paleontologist Alfred Romer, who first recognized it.
  • Romer's gap spanned from approximately 360 to 345 million years ago, corresponding to the first 15 million years of the Carboniferous Period.
  • The bank of the Whiteadder Water in Scotland is one of the few known localities bearing fossils of tetrapods from Romer's gap.

• Family and Gender Issues

  • Social expectations that women manage childcare contribute to the gender pay gap and other limitations in professional life for women.
  • In the United States, there is an observable gender pay gap, such that women are compensated at lower rates for equal work as men.
  • The gender pay gap is measured as the ratio of female to male median yearly earnings among full-time, year-round (FTYR) workers.
  • Economists who have investigated the gender pay gap have also noted that women are more likely to choose jobs based on factors other than pay.
  • Recall at least three reasons why there might be a gender pay gap