EBK PRINCIPLES OF MACROECONOMICS
6th Edition
ISBN: 9780073534701
Author: Frank
Publisher: YUZU
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Chapter 10, Problem 3P
To determine
Calculate the output gap and real
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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
12,910
13,280
%
(Click to select) expansionary recessionary
-----
2010
13,590
13,000
%
(Click to select) expansionary recessionary
%
2011
14,050
13,160
%
(Click to select) expansionary recessionary
%
2012
13,600
13,800
%
(Click to select) recessionary expansionary
%
2013
13,680
14,200
%
(Click to select) expansionary recessionary
%
Problem 12-03 (algo, with video solution)
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.
ces
Year
2009
Real GDP
Potential GDP
Output gap
Type of gap
Growth rate of
real GDP
13,250
13,660
%
(Click to select) ✓
2010
13,990
13,300
%
(Click to select)
2011
14,450
13,400
%
(Click to select)
%
2012
13,880
14,060
%
(Click to select)
8
2013
14,080
14,500
%
(Click to select)
8
Recessionary gap is identified during
O 2009; 2012-2013
O 2009-2010; 2013
O 2010-2011
O 2011-2012
Go to these links:
https://data.worldbank.org/indicator/NY.GDP.MKTP.CD?end=2018&start=2000
https://data.worldbank.org/indicator/NY.GDP.DEFL.ZS?end=2018&start=2000
Choose the time range from 2010 to 2018. Pick one country and calculate real GDP for this country using the statistics for each year from the links. Discuss why real GDP is more appropriate for the economic analysis.
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