The term output gap refers to the difference between the actual output of aneconomyand the maximum potential output of an economy expressed as a percentage ofgross domestic product (GDP). A country's output gap may be either positive or negative. A negative output gap suggests that actual econ...
I must confess that from my own perspective, the “output gap” measure thus defined as the deviation from “natural output” has some counter-intuitive aspects, including the fact that output never exceeds potential during the dot-com boom era. But the late 1990’s/early 2000’s were a pe...
To a limited extent, because input output analysis deals with aggregate categories, it falls within the purview of macroeconomics. Yet because it is applied within the realm of observable and measured phenomena, input-output analysis is considered a branch of econometrics. As such, much of the...