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Classroom Newsletter: The Output Gap: A "Potentially" Unreliable Measure of Economic Health

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Classroom Newsletter: The Output Gap: A "Potentially" Unreliable Measure of Economic Health

GRADE LEVEL: 9-12, college, and adult

OVERVIEW: The output gap is one (of many) economic indicators used by economists to measure the strength of the economy. What exactly is the output gap, and how accurately does it predict the state of the economy?

KEY TOPICS: economics, data, gross domestic product (GDP), unemployment, inflation/deflation

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