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Discuss the differences between pure risk,business risk and market risk.
Recessionary Gap
A situation where the real Gross Domestic Product (GDP) is lower than the potential GDP, indicating underperformance in an economy.
Short-Run Aggregate Supply
The total production of goods and services available in an economy at different price levels in the short term, often influenced by temporary factors.
Expansionary Gap
A situation in macroeconomics when the output of an economy exceeds the potential output level, typically leading to inflationary pressures.
Recessionary Gap
A situation where the real GDP is lower than the potential GDP at full employment, indicating underutilized resources in an economy.
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