One of the chief causes of exploding homebrew bottles is beer that has not been fully fermented before bottling. Many home brewers are anxious to drink their newest brew and rush it into the bottle too early.
It is sometimes expressed as too much spending (or money) chasing too few goods.. Cost-push inflation describes prices rising because of increases in per unit costs of production. Cost-push inflation is most likely to be associated with a negative GDP gap, as the rising production costs reduce spending and output.Demand-pull inflation is more likely to occur with a positive GDP gap, because actual GDP will exceed its potential only when aggregate spending is strong and rising.t is sometimes expressed as too much spending (or money) chasing too few goods.. Cost-push inflation describes prices rising because of increases in per unit costs of production. Cost-push inflation is most likely to be associated with a negative GDP gap, as the rising production costs reduce spending and output.
Suppose the economy experiences an output gap whereby equilibrium GDP = 8800 and Potential GDP = 9000. This is a recessionary gap, because the equilibrium GDP is less than the Potential GDP. Our desire is to close the gap, and in order to do so, we will chose some type of fiscal policy.That is, we will either change taxes or government spending in order to close this recessionary gap of 200.ur desire is to close the gap, and in order to do so, we will chose some type of fiscal policy. That is, we will either change taxes or government spending in order to close this recessionary gap of 200.