The output gap can be used to estimate the extent to which the Reserve Bank misses its goal of

Name: The output gap can be used to estimate the extent to which the Reserve Bank misses its goal of
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The output gap measures the difference between actual output and potential output. Potential output is the level of output that the economy can produce when all resources are fully employed. The output gap can be used to estimate the extent to which the Reserve Bank misses its goal of maximum employment.

The Output Gap Can Be Used to Estimate the Extent