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Business
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| Number of pages / Number of words: |
37 / 10156 |
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the output level with production factors fully employed .
The concept and estimation of the output gap is useful in several respects. First, the output gap in the short-run serves as an indicator of the balance between aggregate supply and aggregate demand in the economy. Negative output gap implies that aggregate demand is below aggregate supply or, alternatively, that there is excess capacity in the economy...
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the output level with production factors fully employed .
The concept and estimation of the output gap is useful in several respects. First, the output gap in the short-run serves as an indicator of the balance between aggregate supply and aggregate demand in the economy. Negative output gap implies that aggregate demand is below aggregate supply or, alternatively, that there is excess capacity in the economy...
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