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Using the SOAP format, the diagnosis made by the doctor is:
Full Employment GDP
The maximum level of production an economy can sustain while keeping unemployment at its natural or non-accelerating inflation rate of unemployment (NAIRU).
Multiplier
In economics, a factor by which a change in spending results in an amplified change in national income and output.
Inflationary Gap
The difference between the actual output of an economy and the output it would produce without inflation, indicating an overheated economy.
Recessionary Gap
A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources.
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