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Productivity is commonly defined as a ratio between the output volume and the volume of inputs. produce a given level of output. assessments. regulations on economic performance. productive capacity of economies. to gauge the position of economies in the business cycle and to forecast economic growth.
DEFINITION of 'Output Gap'. An economic measure of the difference between the actual output of an economy and the output it could achieve when it is most efficient, or at full capacity. There are two types of output gaps: positive and negative.A positive output gap occurs when actual output is more than the full-capacity output.Negative output gap occurs when actual output is less than full-capacity output.AA |. An economic measure of the difference between the actual output of an economy and the output it could achieve when it is most efficient, or at full capacity.