Actual and potential output in the United States \table[[Year, \table[[Real GDP], [(trillions)]], \table[[Potential Output], [(trillions)]]], [2016, $17.68, $18.02Real GDP(trillions)$17.68qadi 2017$18.08geld in loolivo zoy matal glød lliw radi sisi bon ofdoj Actual and potential output in the United States andYearПолозвае вар2016$18.02D$18.32Potential Outputollo (trillions) oban 2018$18.61$18.652019$19.03$19.022020$18.38$19.382021$19.43$19.78a. Calculate the output gap for each year.b. What does it mean when the output gap is negative?What does it mean when it is positive?c. For each year, calculate how much the output gapchanged. Compare this to the growth rate of actualoutput that year, less the growth rate of potentialoutput.

The actual and potential output in the United States is given as YearReal GDPPotential…

Actual and potential output in the United States \table[[Year, \table[[Real GDP], [(trillions)]],\table[[Potential Output], [( trillions)]]],[2016,$17.68, $18.02 og.ald on toolwo woy motal glad was bo of Actual and potential output in the United States doj Year Real GDP Папознае за 16 (trillions) Potential Output (trillions) 10.11 2016 $17.68 $18.02 sqad 2017 $18.08 $18.32 2018 $18.61 $18.65 2019 $19.03 $19.02 ง 2020 $18.38 $19.38 S 2021 $19.43 $19.78 a. Calculate the output gap for each year. b. What does it mean when the output gap is negative? What does it mean when it is positive? c. For each year, calculate how much the output gap changed. Compare this to the growth rate of actual output that year, less the growth rate of potential output. Output

Actual and potential output in the United States \table[[Year, \table[[Real GDP], [(trillions)]],\table[[Potential Output], [( trillions)]]],[2016,$17.68, $18.02 og.ald on toolwo woy motal glad was bo of Actual and potential output in the United States doj Year Real GDP Папознае за 16 (trillions) Potential Output (trillions) 10.11 2016 $17.68 $18.02 sqad 2017 $18.08 $18.32 2018 $18.61 $18.65 2019 $19.03 $19.02 ง 2020 $18.38 $19.38 S 2021 $19.43 $19.78 a. Calculate the output gap for each year. b. What does it mean when the output gap is negative? What does it mean when it is positive? c. For each year, calculate how much the output gap changed. Compare this to the growth rate of actual output that year, less the growth rate of potential output. Output

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Actual and potential output in the United States \table[[Year, \table[[Real GDP], [(trillions)]], \table[[Potential Output], [(
trillions)]]], [2016, $17.68, $18.02
Real GDP
(trillions)
$17.68
qadi 2017
$18.08
geld in loolivo zoy matal glød lliw radi sisi bon of
doj Actual and potential output in the United States and
Year
Полозвае вар
2016
$18.02
D$18.32
Potential Output
ollo (trillions) o
ban 2018
$18.61
$18.65
2019
$19.03
$19.02
2020
$18.38
$19.38
2021
$19.43
$19.78
a. Calculate the output gap for each year.
b. What does it mean when the output gap is negative?
What does it mean when it is positive?
c. For each year, calculate how much the output gap
changed. Compare this to the growth rate of actual
output that year, less the growth rate of potential
output.

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