output gap


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output gap

[′au̇t‚pu̇t ‚gap]
(electronics)
An interaction gap by means of which usable power can be abstracted from an electron stream in a microwave tube.
References in periodicals archive ?
Cyclically adjusted net lending and primary balances are attempts by the OECD to measure the fiscal balance if the output gap were zero.
Because of the relatively large share of employment that is part-time, some think that the output gap may be closer than the unemployment rate gap in terms of measuring the amount of slack in the economy.
This forward looking IS equation shows that domestic output gap depends inversely on the real interest rate [[i.
The same applies to another conventional theory that links fluctuations in unemployment with the output gap (Okun's Law).
Easier policy would close the output gap faster, while inflation would remain on the right track and eventually decline toward 2 percent.
The output gap influences producers' prices because it reflects their current marginal costs of production.
Not until 2017, however, will the output gap close and CPIF inflation hit 2 per cent (see Diagram 10).
The current output gap is a result of weak demand due to the 2008/2009 global financial crisis.
Taylor (1993) was among the first to suggest that the Federal Reserve may be following a simple instrument rule by setting the nominal interest rate in response to inflation and the output gap.
First posited in 1993 by economist John Taylor, this "rule" suggests that the Fed generally responds to movements in inflation and the level of the output gap (deviations of output from potential).
And quantifying the output gap is important because the bigger the gap, the more reason there is to enact more policy action, he reasoned.
This issue is central to the debate on the size of the output gap in the US, which is a key input into macroeconomic policy decision-making.