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What (who) is overheated$56608$ - definition

WHEN AN ECONOMY'S PRODUCTIVE CAPACITY IS UNABLE TO KEEP PACE WITH GROWING AGGREGATE DEMAND

Overheated Economy; Economic overheating; Overheated economy

Overheating (economics)

Overheating of an economy occurs when its productive capacity is unable to keep pace with growing aggregate demand. It is generally characterised by a below-average rate of economic growth, where growth is occurring at an unsustainable rate.

https://en.wikipedia.org/wiki/Overheating_(economics)

overheat

WIKIMEDIA DISAMBIGUATION PAGE

Overheating (disambiguation); Overheat; Overheated

(overheats, overheating, overheated)

1.

If something overheats or if you overheat it, it becomes hotter than is necessary or desirable.

The engine was overheating and the car was not handling well...

Why do we pay to overheat pubs and hotels?

VERB: V, V n

• overheated

...that stuffy, overheated apartment.

ADJ

2.

If a country's economy overheats or if conditions overheat it, it grows so rapidly that inflation and interest rates rise very quickly. (BUSINESS)

The private sector is increasing its spending so sharply that the economy is overheating...

Their prime consideration has been not to overheat the economy.

VERB: V, V n

• overheated

...the disastrous consequences of an overheated market.

ADJ

Overheat

WIKIMEDIA DISAMBIGUATION PAGE

Overheating (disambiguation); Overheat; Overheated

·vt To heat to excess; to Superheat.

Wikipedia

Overheating (economics)

Overheating of an economy occurs when its productive capacity is unable to keep pace with growing aggregate demand. It is generally characterised by a below-average rate of economic growth, where growth is occurring at an unsustainable rate. Boom periods are often characterised by overheating in the economy. An economy is said to be overheated when inflation increases due to prolonged good growth rate and the producers produce in excess thereby creating excess production capacity. The main reason behind overheating is insufficient supply allocation because of excess spending by the people due to increase in consumer wealth.

https://en.wikipedia.org/wiki/Overheating (economics)