With today's revisions of real GDP, I want to post two graphs.
Trending Real GDP according to Effective Demand
So after the rise late last year, and the dip in the 1st quarter and the rise in the 2nd quarter... The potential GDP of Effective Demand is simply back on its exponential trend line. Yet, real GDP is closer to its projected effective demand limit roughly around $16.1 to $16.2 trillion.
The Output Gap
The output gap as determined by Effective Demand is based on the % difference between capacity utilization and effective labor share. The output gap is currently in range for a normal top to the business cycle. The implication is that there is little spare capacity left in the business cycle.