Suppose the growth rate of potential output rises. The behavior of the output gap (the fluctuations of

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Suppose the growth rate of potential output rises. The behavior of the output gap (the fluctuations of output around potential) does not change. Do NBER recessions become more or less common? Explain.

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Money Banking and Financial Markets

ISBN: 978-1429244091

2nd edition

Authors: Laurence M. Ball

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Question Posted: Dec 05, 2015 03:45 AM

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Suppose the growth rate of potential output rises. The behavior of the output gap (the fluctuations of

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With a higher growth rate of potential output NBER recessions become less common ...View the full answer

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