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v Deflationary policies designed to control cost - push inflation will have the effect of reducing real national output below potentialcreatinga negative output gap
During a recession the output declinescreatinga negative output gap
Below trend growth – negative output gap : If the economy experiences a sustained slowdown or recession ( i.e. growth is well below the trend rate ) then output will fall short of potential GDPleadingto a negative output gap
to pull the economy below its potentialthus creatinga negative output gap
a fall in Real GDPcausesa negative output gap
aggregate demand fell below potential outputleadingto a negative output gap
during which actual output fell short of potentialthus creatinga negative ‘ output gap
to grow at a rate below its potential in the first half of the yearresultingin a negative output gap
a resultcreatinga negative output gap
falling ADcausinga negative output gap
actual economic output ... its potentialcreatesa negative output gap
falling aggregate demandcausinga negative output gap
all episodes beginning after December 31 , 2007 , during which actual output is estimated / forecast to fall short of potentialthus creatinga negative output gap
the global economic downturnhaving ledto a negative output gap
When there 's a negative demand shockcreatinga negative output gap
national output < potential outputleadingto a negative output gap
falling pricesmay contributenegative output gap
actual economic output ... a desirable , or “ potential , ” levelcreatesa negative output gap
The resulting higher real interest rates , in turn , lower aggregate demandleadsto a negative output gap
an increase in productive potential leading to excess aggregate supply CostsDiscourages consumer spending(passive) can be caused bya negative output gap
the influence of the weak yenwould ... contributeto the negative output gap
the increase in potential growth(passive) created bythe negative output gap
The US economy is now producing above its potential (leadingto a negative output gap
a general glut ... in turnshould createa negative output gap
The appreciated currency and higher real ratesleadto a negative output gap
these firmswould be creatinga negative output gap
to falling inflation or even deflationleadsto falling inflation or even deflation
rising unemployment(passive) caused byrising unemployment
needlessly high unemployment that is ( relatively ) easy to get rid ofcausesneedlessly high unemployment that is ( relatively ) easy to get rid of
when the productivity shock occuredcreatedwhen the productivity shock occured
to disinflationledto disinflation
strong deflationary pressurestriggeredstrong deflationary pressures
to shrink in the US , Japan and Britainare setto shrink in the US , Japan and Britain
the problems(passive) created bythe problems
in inflation that is too lowwill resultin inflation that is too low
a worsening of government financescausesa worsening of government finances
from a collapse in ADcreatedfrom a collapse in AD
low inflation or even deflationwill typically causelow inflation or even deflation
to a moderating inflation ratewill contributeto a moderating inflation rate
to a bottleneck in the economycan leadto a bottleneck in the economy
3 million unemployed until the mid 1980scausing3 million unemployed until the mid 1980s
monetary stimulusmight promptmonetary stimulus
inflation to fall persistently - implying a progressive depreciation of the terms of trade - andcausesinflation to fall persistently - implying a progressive depreciation of the terms of trade - and
pricing power(passive) caused bypricing power
in casesresultingin cases
to low core service inflation of 2.4 %has contributedto low core service inflation of 2.4 %
in an estimated structural fiscal position that is larger than the estimated headline balance ( Table 2resultingin an estimated structural fiscal position that is larger than the estimated headline balance ( Table 2
to upward inflationary pressuresleadingto upward inflationary pressures