Given below are data on real GDP and potential GDP for the nation of Anaziland f
ID: 3175728 • Letter: G
Question
Given below are data on real GDP and potential GDP for the nation of Anaziland for the years 2009–2013, in billions of 2009 currency. For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or an expansionary gap. Also calculate the year-to-year growth rates of real GDP.
Instructions: Enter your response as a percentage rounded two decimal places.If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
Year
Real GDP
Potential GDP
Output gap
Type of gap
Growth rate of real GDP
2009
12,400
12,710
%
(Click to select)recessionaryexpansionary
-----
2010
12,990
12,550
%
(Click to select)recessionaryexpansionary
%
2011
13,450
12,800
%
(Click to select)expansionaryrecessionary
%
13,080
13,750
A Recessionary gap is identified during
Year
Real GDP
Potential GDP
Output gap
Type of gap
Growth rate of real GDP
2009
12,400
12,710
%
(Click to select)recessionaryexpansionary
-----
2010
12,990
12,550
%
(Click to select)recessionaryexpansionary
%
2011
13,450
12,800
%
(Click to select)expansionaryrecessionary
%
2012 13,180 13,410 % (Click to select)recessionaryexpansionary % 201313,080
13,750
% (Click to select)recessionaryexpansionary %Explanation / Answer
Outgap gap = {GDP(actual) - GDP(potential)} / GDP(potential)
If outgap gap is positive, it is expansionary and if it is negative, it is recessionary
For Growth rate of real GDP = (GDP in nth year - GDP in n-1 th year)/GDP in n-1 th year * 100
A Recessionary gap is identified during year 2009, 2012-2013 , option D.
Year Real GDP Potential GDP Output Gap Type of Gap Growth rate of real GDp 2009 12400 12710 -310 Recessionary - 2010 12950 12550 400 Expansionary 4.76% 2011 13450 12800 650 Expansionary 3.86% 2012 13180 13410 -230 Recessionary -2.00% 2013 13080 13750 -670 Recessionary -0.75Related Questions
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