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Chapter 19

ECON 209 Chapter Notes - Chapter 19: Output Gap, Potential Output, Full Employment


Department
Economics
Course Code
ECON 209
Professor
Sara Hayati
Chapter
19

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
Macroeconomics


 !
" #
$
o%&'('
'$
) )
'!
o%*'
'
!
+,

short-term
uctuations
 
long-run
economic growth
!
-".'$
/01
o%2


national
product. 
%
!
%'3
,!
o
Nominal National Income:
%
!+(
!
o+''
,
 '!%* 
,
!
o
Real National Income:

'(!1 

Only pages 1-2 are available for preview. Some parts have been intentionally blurred.

,!+(
!
4 

)
,!
/

gross domestic product (GDP)
'
!
o5$+678!/3
 , 678
!
o9$:
  &!
Real GDP
,
'2
!
8/0%/6
o
National output (or income) (Y)
$ 


!
o
Potential output (Y*):
%678
 
!+678!%
 
'( !
The output gap
#
' 
;(;<!
Y < Y*
(
The recessionary gap.
%
&
'
2!
Y > Y*
(
The inationary gap.
%
&
* 
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' & &
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=0%>':
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