Butalso, don'tbe surprisedwhenpolicymistakescombine withunexpectedshocksto leave the economysubstantially short of potential output and full employment.
After a decade of turbo-charged growth, output will necessarily decelerate, as the labor force approaches fullemployment and inflation forces the hand of President Dilma Rousseff. (Read Brazil: A Bubble In Labor Markets?).
Well, the answer to that depended largely on whether Q (real output) was pretty much maxed out, meaning running at or near fullemployment of labor and other resources, or whether there was significant slack in the economy that might be taken up by greater spending.