Basu, Susanto; Fernald, John G. - 2009
use
a one-sector neoclassical model to think about long-run growth, and often assume that potential
output is a smooth …,
faster growth in potential output leads to faster growth in actual output and, for given trends in
population and workforce …, faster growth in incomes per capita. In the short run, policymakers
need to assess the degree to which fluctuations in …