The Meaning of Output Trends in the Analysis of Growth

  • Attilio Trezzini


This chapter discusses the meaning of the output trends examined in the analysis of growth and their relation to actual levels of output and income. These issues are seldom explicitly examined in the literature, where the relation between actual and theoretical magnitudes assumed in the theory of prices appears to be automatically extended to the magnitudes addressed by theories of growth. In field of economic growth, however, the distinction between actual and theoretical magnitudes overlaps with the distinction between cyclical and trend positions of the economy. This gives rise to crucial misunderstandings, at least from the standpoint adopted here.


Aggregate Demand Normal Utilisation Cyclical Fluctuation Normal Prex Actual Magnitude 
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