Gordon, Robert J. - National Bureau of Economic Research (NBER) - 2005
real GDP, of the output gap, and of the inflation rate. The primary results of the paper are based on a small three …-equation macro model that includes equations for the inflation rate, the nominal Federal Funds rate, and the change in the output gap … the model%u2019s inflation equation, and the error term in the output gap equation that is interpreted as representing %u …