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December 1977

Will Bottlenecks Slow the Expansion?

by William D. Nordhaus

The topic of this conference is indeed an important one. Although currently the United States economy suffers from considerable excess capacity, both in labor and in product markets, we hope that this condition will not last forever. What I would like to discuss this afternoon is the state of utilization and the extent of imbalance in different markets, and possible strategies for avoiding bottlenecks during this recovery.