Tag Archives: GDP

Jobs & GDP — Update

A follow-up on the prospect of a long, painful recovery of lost jobs.

Here is the latest projection from the Congressional Budget Office (CBO) of the gap between real GDP and real potential GDP (via Paul Krugman):

Figure 1

Potential GDP is a useful estimate of what the economy would be producing if it were not in a serious recession. The difference between potential and actual GDP is commonly known as the “output gap.”

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