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The reason why self-correction works to close a contractionary gap is because
Amortization
The process of gradually writing off the initial cost of an intangible asset over a period, reflecting its consumption, expiration, or obsolescence.
Depreciation Adjustment
A financial reporting mechanism to allocate the cost of a tangible asset over its useful life.
Intra-Entity Asset Transfers
Transactions involving the transfer of assets from one segment of an organization to another within the same entity.
Excess Amortizations
Amortization expenses that are higher than what is considered normal or expected, often due to aggressive repayment of debt or intangible assets.
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