Figure 3
The multi-panel line graph shows two side-by-side panels. For both panels at the bottom, the legend includes “Hodrick-Prescott” shown as a dotted line, “Christiano Fitzgerald” shown as a solid line, and “Exponential Regression” shown as a dashed line. For the left side panel, the vertical axis ranges from negative 0.04 to 0.06 in increments of 0.02 units. The horizontal axis shows a continuous sequence of observations from left to right. The dotted line “Hodrick-Prescott” fluctuates around 0.00, starts near 0.00, dips to negative 0.01, rises to 0.01, and continues with small oscillations, and ends near 0.01. The solid line “Christiano Fitzgerald” shows smooth wave-like movements, starts slightly below 0.00, rises to 0.01, dips near negative 0.01, rises again to 0.01, and ends near 0.00. The dashed line “Exponential Regression” starts near 0.03, rises to 0.04, drops sharply to near 0.00, then increases again to 0.05, fluctuates between 0.03 and 0.05, drops again near 0.01 toward the right, and ends near 0.04. For the right side panel, the vertical axis ranges from negative 0.20 to 0.20 in increments of 0.05 units. The horizontal axis shows a continuous sequence of observations from left to right. The dotted line “Hodrick-Prescott” fluctuates close to 0.00, starts near 0.00, dips slightly below 0.00, rises slightly above 0.00, and shows a sharp drop to around negative 0.10 near the right side before returning close to the end at 0.00. The solid line “Christiano Fitzgerald” remains near 0.00 with small oscillations, starts near 0.00, dips slightly below 0.00, rises slightly above 0.00, and ends near 0.00. The dashed line “Exponential Regression” starts near 0.03, fluctuates between 0.03 and 0.05, dips slightly below 0.00 in the early section, rises again, and shows a sharp spike above 0.10 near the right side before declining to end at 0.03. Note: All numerical data values are approximated.Measuring the output gap. Source(s): Author’s own calculation