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Output Gap – great graphic

Mark Johnston

15th October 2010

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Here is a link to the Washington Post that explains the output gap – the divide between the amount an economy can produce and what it is actually producing. Just click through the different stages of growth and see the gap widening. They also look at three growth scenarios (see image below) and the impact on the output gap.

Click here to go to the graphic.


image

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Mark Johnston

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