So a restrictive policy, if we're just thinking of fiscal, we're not talking about monetary yet. Alright? We've already identified today what those policies look like. Alright? And we're down in that recessionary gap, we need an expansive policy. And as we said today, when we're up there in that inflationary gap, we need a restrictive policy.
And again, not to, to reveal too much, we did last week, remember that in the recessionary gap, we've got an unemployment problem and inflationary gap, we've got an inflation problem.
Those were recessionary gaps and again, on this chart we've got two of those, alright. And then we talked about this place where GDP was too low. And on this picture, we've got two of them. Remember those were our inflationary gaps, alright. Remember we drew this business cycle, and then what we did was we identified those places where, GDP growth was too high, okay. It doesn't always grow at potential, alright. It doesn't always stay at a certain growth rate. And we said it's very, dynamic or unstable, depending on what term you like better. And remember that we defined we identified a target point, which is potential GDP, some level of growth of GDP at which inflation wouldn't be accelerating, and we'd be more or less fully employed, alright? So if we draw across this, what a business cycle actually looks like. Remember we drew on the horizontal axis, we put time and on the vertical axis, we put real change in GDP. If we go back then, to the picture we were drawing last week of the business cycle.
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