It is one type of output gap, the other being a recessionary gap.

If this gap is positive, it is known as recessionary gap.

In the basic Keynesian model, to close a recessionary gap of $5 billion dollars government purchases must be:

A short-run equilibrium with an recessionary gap implies that:

In the basic Keynesian model where the marginal propensity to consume is 0.5, to offset a recessionary gap resulting from a $1 billion decrease in autonomous consumption, taxes must be: