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To close an inflationary gap, the Great Moderation consensus on macroeconomics suggests that:
Defined Contribution Plans
Retirement savings plans where the amount contributed to an employee's account is defined, but the payout at retirement depends on the account's investment performance.
Defined Benefit Plans
A retirement plan where employee benefits are calculated using a formula that considers factors such as salary history and duration of employment.
Deferred Profit-sharing Plans
A type of retirement plan in which employees receive a share of the company's profits at a future date, typically upon retirement.
Contributory Benefits
Benefits, typically related to pension or insurance, that require contributions from both the employee and the employer.
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