How does a recessionary gap affect unemployment, GDP growth, and inflation in an economy?

A recessionary gap occurs when an economy is producing less than its potential output, leading to higher unemployment and slower GDP growth. When businesses are not making enough products or services, they need fewer workers, which causes unemployment to rise as people lose their jobs or cannot find new ones. This lower level of production also means that the overall economic growth, measured by GDP, slows down because fewer goods and services are being created and sold. Additionally, during a recessionary gap, inflation tends to decrease because there is less demand for products, leading to lower prices. For example, if a factory usually employs 100 workers but only needs 70 due to reduced demand, the remaining 30 workers may be laid off, contributing to higher unemployment and a slower economy.