The story is a bit different with the expenditure-driven adjustments. In five of the ten adjustments for which there is data, the output gap was more than one percentage point of GDP at the beginning of the adjustment. In four of these five cases the gap was more than two percentage points of GDP, as shown in Figure 5. These four cases were Finland (1996-2000), Netherlands (1996), Norway (1994-95), and Sweden (1994-98). However, in none of these cases was an economy as far below its potential as the United States economy in 2010. The biggest output gap among this.
