{"id":329,"date":"2024-05-30T03:23:22","date_gmt":"2024-05-30T03:23:22","guid":{"rendered":"https:\/\/course.oeru.org\/maec102\/?page_id=329"},"modified":"2024-05-30T03:23:22","modified_gmt":"2024-05-30T03:23:22","slug":"full-employment-vs-equilibrium-gdp","status":"publish","type":"page","link":"https:\/\/course.oeru.org\/maec102\/learning-pathways\/aggregate-demand\/full-employment-vs-equilibrium-gdp\/","title":{"rendered":"Full employment vs. equilibrium GDP"},"content":{"rendered":"<div id=\"content\" class=\"mw-body container\" role=\"main\">\n<div class=\"row\">\n<div class=\"col-md-12\">\n<div class=\"panel\">\n<div class=\"panel-body\">\n<div id=\"bodyContent\">\n<div id=\"mw-content-text\" lang=\"en\" dir=\"ltr\" class=\"mw-content-ltr\"><div class=\"panel iDevice\">\n\t<div class=\"panel-heading idevice-heading\">\n\t\t<div>\n\t\t\t<img decoding=\"async\" class=\"pedagogicalicon\" alt=\"media\" src=\"https:\/\/course.oeru.org\/maec102\/wp-content\/themes\/oeru_course\/idevices\/Icon_multimedia.png\">\n\t\t<\/div>\n\t\t<div>\n\t\t\t<h2>Full employment GDP versus equilibrium GDP<\/h2>\n\t\t<\/div>\n\t<\/div>\n\t<div class=\"panel-body\">\n\t\t<div class=\"col-md-12\">\n\t\t\t<\/p>\n<p>\n<div data-mode=\"normal\" data-oembed=\"1\" data-provider=\"youtube\" id=\"arve-youtube-c13tytrcf7q\" style=\"max-width:400px;\" class=\"arve alignleft\">\n\t<div class=\"arve-inner\">\n\t\t<div style=\"aspect-ratio:500\/281\" class=\"arve-embed arve-embed--has-aspect-ratio\">\n\t\t\t<div class=\"arve-ar\" style=\"padding-top:56.200000%\"><\/div>\n\t\t\t<iframe allow=\"accelerometer &apos;none&apos;;autoplay &apos;none&apos;;bluetooth &apos;none&apos;;browsing-topics &apos;none&apos;;camera &apos;none&apos;;clipboard-read &apos;none&apos;;clipboard-write;display-capture &apos;none&apos;;encrypted-media &apos;none&apos;;gamepad &apos;none&apos;;geolocation &apos;none&apos;;gyroscope &apos;none&apos;;hid &apos;none&apos;;identity-credentials-get &apos;none&apos;;idle-detection &apos;none&apos;;keyboard-map &apos;none&apos;;local-fonts;magnetometer &apos;none&apos;;microphone &apos;none&apos;;midi &apos;none&apos;;otp-credentials &apos;none&apos;;payment &apos;none&apos;;picture-in-picture;publickey-credentials-create &apos;none&apos;;publickey-credentials-get &apos;none&apos;;screen-wake-lock &apos;none&apos;;serial &apos;none&apos;;summarizer &apos;none&apos;;sync-xhr;usb &apos;none&apos;;web-share;window-management &apos;none&apos;;xr-spatial-tracking &apos;none&apos;;\" allowfullscreen=\"\" class=\"arve-iframe fitvidsignore\" credentialless data-arve=\"arve-youtube-c13tytrcf7q\" data-lenis-prevent=\"\" data-src-no-ap=\"https:\/\/www.youtube-nocookie.com\/embed\/C13tYTRcf7Q?feature=oembed&amp;iv_load_policy=3&amp;modestbranding=1&amp;rel=0&amp;autohide=1&amp;playsinline=0&amp;autoplay=0\" frameborder=\"0\" height=\"224.8\" loading=\"lazy\" name=\"\" referrerpolicy=\"strict-origin-when-cross-origin\" sandbox=\"allow-scripts allow-same-origin allow-presentation allow-popups allow-popups-to-escape-sandbox\" scrolling=\"no\" src=\"https:\/\/www.youtube-nocookie.com\/embed\/C13tYTRcf7Q?feature=oembed&#038;iv_load_policy=3&#038;modestbranding=1&#038;rel=0&#038;autohide=1&#038;playsinline=0&#038;autoplay=0\" title=\"Video by AP Economics Screencasts\" width=\"400\"><\/iframe>\n\t\t\t\n\t\t<\/div>\n\t\t\n\t<\/div>\n\t\n\t\n\t<script type=\"application\/ld+json\">{\"@context\":\"http:\\\/\\\/schema.org\\\/\",\"@id\":\"https:\\\/\\\/course.oeru.org\\\/maec102\\\/learning-pathways\\\/aggregate-demand\\\/full-employment-vs-equilibrium-gdp\\\/#arve-youtube-c13tytrcf7q\",\"type\":\"VideoObject\",\"embedURL\":\"https:\\\/\\\/www.youtube-nocookie.com\\\/embed\\\/C13tYTRcf7Q?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0\",\"name\":\"Video by AP Economics Screencasts\"}<\/script>\n\t\n<div class=\"arve-error\"><p><small><abbr title=\"Advanced Responsive Video Embedder\">ARVE<\/abbr> error: maxwidth: <code>400px<\/code> is not valid<\/small><\/p><\/div>\n<\/div><br style=\"clear:both;\"><\/p>\n<p>Watch this short video by AP Economics Screencasts which explains Equilibrium GDP and Full Employment GDP.\n<\/p>\n<p>Then\n<\/p>\n<ul>\n<li> Read this Wikipedia article on the <a rel=\"nofollow\" class=\"external text\" href=\"https:\/\/en.wikipedia.org\/wiki\/Output_gap\">&#8220;Output Gap&#8221;<\/a>, which gives you more information on the two types of GDP: full employment and equilibrium. You should be able to draw distinctions between these two types after reading this article. Full employment GDP occurs near what this reading refers to as potential GDP &#8211; where the long-run aggregate supply curve is vertical. In contrast, equilibrium GDP occurs where the short-run aggregate supply curve intersects the aggregate demand curve. Output gaps occur when the three curves intersect at different points.\n<\/li>\n<\/ul>\n<dl>\n<dd> The recessionary gap occurs to the left of long-run equilibrium in a graph depicting the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves. In short, it means the business cycle is in a contractionary phase with high unemployment, low output, and low income levels.\n<\/dd>\n<\/dl>\n<dl>\n<dd> The inflationary gap occurs to the right of long-run equilibrium in a graph depicting the aggregate demand, short-run aggregate supply, and long-run aggregate supply curves. In short, it means the business cycle is in a contractionary phase with high unemployment, low output, and low income levels.\n<\/dd>\n<\/dl>\n<ul>\n<li> <i>The difference between Equilibrium and Full Employment GDP is&#8230;<\/i>\n<\/li>\n<li> <i>I didn&#8217;t realise that &#8230;.&#8217;<\/i>\n<\/li>\n<li> <i>the recessionary and inflationary gaps mean  &#8230;<\/i>\n<\/li>\n<li> <i>or share any relevant thoughts and ideas you have on the video<\/i>.\n<\/li>\n<\/ul>\n<div><p>You must be logged in to post to WEnotes.<\/p><\/div>\n<p><i>Note: Your comment will be displayed in the <a href=\"https:\/\/wikieducator.org\/Introduction_to_principles_of_macroeconomics\/Feed\" title=\"Introduction to principles of macroeconomics\/Feed\">course feed<\/a>.<\/i><\/p>\n<p>\n<\/p>\n<p>\n\t\t<\/div>\n\t<\/div>\n<\/div><\/p>\n<p><!-- \nNewPP limit report\nCPU time usage: 0.023 seconds\nReal time usage: 0.029 seconds\nPreprocessor visited node count: 157\/1000000\nPreprocessor generated node count: 1076\/1000000\nPost\u2010expand include size: 5663\/2097152 bytes\nTemplate argument size: 3889\/2097152 bytes\nHighest expansion depth: 7\/40\nExpensive parser function count: 0\/100\n--><\/p>\n<p><!-- Saved in parser cache with key we_en-mw_:pcache:idhash:177084-0!*!0!*!*!2!* and timestamp 20240529062004 and revision id 1035717\n -->\n<\/div>\n<div class=\"visualClear\"><\/div>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"row\">\n<div class=\"col-md-12\">\n<ul class=\"pager\">\n<li class=\"previous\">\n            <a href=\"\/maec102\/learning-pathways\/aggregate-demand\/components-of-aggregate-demand\">\u2190 Previous<\/a>\n          <\/li>\n<li class=\"next\">\n            <a href=\"\/maec102\/learning-pathways\/aggregate-demand\/economic-indicators\">Next \u2192<\/a>\n          <\/li>\n<\/ul><\/div>\n<\/p><\/div>\n<div id=\"wenote-ids\"><script type='text\/javascript' id='wenotes-ids'>\n    var WEnotesSite = \"https:\/\/wikieducator.org\";\n    var WEnotesPath = \"\/Macroeconomics_activity_and_demand\/Equilibrium_GDP\";\n    var WEnotesSiteID = \"0e3d258fbd36841f92259eefcd41d5e9\";\n    var WEnotesPathID = \"b4d5e881b85e38d4a385f47c19d75030\";\n    var WEnotesIDs = { site: \"https:\/\/wikieducator.org\", path: \"\/Macroeconomics_activity_and_demand\/Equilibrium_GDP\", site_id: \"0e3d258fbd36841f92259eefcd41d5e9\", path_id: \"b4d5e881b85e38d4a385f47c19d75030\" };\n<\/script><\/div>\n<\/div>\n<footer><\/footer>\n","protected":false},"excerpt":{"rendered":"<p>\u2190 Previous Next \u2192<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":323,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-329","page","type-page","status-publish","hentry"],"_links":{"self":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/comments?post=329"}],"version-history":[{"count":1,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/329\/revisions"}],"predecessor-version":[{"id":330,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/329\/revisions\/330"}],"up":[{"embeddable":true,"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/pages\/323"}],"wp:attachment":[{"href":"https:\/\/course.oeru.org\/maec102\/wp-json\/wp\/v2\/media?parent=329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}