2.5.2 Output gaps
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Define the term negative output gap
When actual growth rates bellow above potential growth
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Define the term positive output gap
When actual growth rates are above potential growth
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Why are output gaps difficult to measure in real life
Because it is hard to measure the potential output of an economy
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Draw a negative gap on an AD/AS diagram
Gap between y1 and y* is the output gap
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Note 
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