Profile image
By Ed Dolan (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Chart of the Day: The Output Gap

Saturday, February 18, 2017 19:50
% of readers think this story is Fact. Add your two cents.

(Before It's News)

Potential real GDP is the real output that an economy can produce when it is operating at a level that can be sustained without excessive inflation. Output falls below its potential level during a slump and can temporarily rise above its potential level during a boom.

The output gap is equal to the economy’s actual real GDP minus its potential GDP. The gap is negative when the economy is in a slump an positive when it is in a boom. The following chart shows the output gap for the US economy from 2000 to 2016 as a percentage of potential GDP. The chart is based on actual real GDP as reported by the Bureau of Economic Analysis and potential real GDP as estimated by the Congressional Budget Office. (Data for Q4 2016 are the author’s own preliminary estimates.)

 Related content: What is the Nairu and Why Does It Matter? An explainer slideshow from Ed Dolan’s Econ Blog



Source: http://dolanecon.blogspot.com/2017/01/chart-of-day-output-gap.html

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories
 

Featured

 

Top Global

 

Top Alternative

 

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.