As construction proceeds, the difference between the price of gas and the price of electricity widens and narrows, giving Duke the opportunity to sell more of the expected output if the price rises or sell output in future years to lock in profits on electricity it has yet to generate.

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Even if households and businesses are caught off guard by the policy, output rises and unemployment falls only temporarily, until households and businesses adjust their expectations to the new reality.

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The result is that, although output per worker rises only slowly or not at all, wages go up as fast as they do in the rest of the economy.

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Stronger rises in factory output and the construction sector, together with continued falls in unemployment, could mean national income as measured by gross domestic product (GDP) is not shrinking as quickly as first estimated.

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