The Output Gap: A "Potentially" Unreliable Measure of Economic Health? (Page One Economics Classroom Edition)

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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? Read the November 2012 issue for an explanation of the output gap and answers to these questions.

Graphs compliments of FRED®.

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Keep your students in the know on timely economic issues with the Page One Economics Classroom Edition. The Page One Economics newsletter provides a simple, short overview of a current economic event that offers students an opportunity to use close reading strategies. The Teacher’s Guide includes student questions and a teacher answer key, plus additional resources and lesson ideas for classroom, extra credit, or make-up assignments. You can subscribe via RSS feed or email.

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Audience:   High School, Consumers, College
Language:   English
Subjects:   AP, Economics
Resource Types:   Data, Publications, Newsletter, Lessons
Concepts:   Gross Domestic Product (GDP), Unemployment, Inflation/Deflation
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