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.
Potential output is the maximum amount of goods and services an economy can turn out when it is most efficientâthat is, at full capacity. Often, potential output is referred to as the production capacity of the economy.Â­ Just as GDP can rise or fall, the output gap can go in two directions: positive and negative.Neither is ideal. A positive output gap occurs when actual output is more than full-capacity output.This happens when demand is very high and, to meet that demand, factories and workers operate far above their most efficient capacity.n this context, the output gap is a summary indicator of the relative demand and supply components of economic activity. As such, the output gap measures the degree of inflation pressure in the economy and is an important link between the real side of the economyâwhich produces goods and servicesâand inflation.