Here is the updated graph of the AS-ED model (aggregate supply-effective demand).
The blue dots show real GDP increasing to the right over the past 8 quarters. The downsloping lines of the effective demand limit have stayed within a fairly tight band. There are two lines that fell out of that band. One was the labor income surge at the end of 2012. The other was the capital income surge at the end of 2013. The effective demand limit corrected back to the band after the labor income surge of 2012. I expect the effective demand limit to correct back to the band in 2014.
Real GDP surpassed the effective demand limit in the 4thQ-2013 (blue dot is above red dot). However, the band determines the zone of the effective demand limit. Thus, real GDP is just now reaching the zone of the effective demand limit. According to the past history of data for the effective demand limit, we would now start to see real GDP slow down and/or move vertical (up or down). An increase in the inflation rate is common from the past data. However, there may be a deflationary reaction as over-production in the face of weaker demand meets lower utilization of labor and capital.