You need to computed the difference between current and potential GDP.Then also compute short-run output (SRO) using the definition given in class: the difference betweenCurrent Real GDP and Potential Real GDP (as a percentage of Potential).Fill up the table below and answer the questions. Be careful with the units in each column.YearY CurrentY Potential Current - PotentialSRO200615,338.315,281.856.500.37200715,626.015,579.6200815,604.715,868.0200915,208.816,105.7201015,598.816,279.6 In year 2007, what was short-run output? Pick the closest value.30% of current nominal GDP30% of potential real GDP0.30% of potential real GDP0.30% of current real GDP

Potential GDP refers to the full employment level of GDP. In other words, it is the country’s…

Answered: In year 2007, what was short-run…

In year 2007, what was short-run output? Pick the closest value. 30% of current nominal GDP 30% of potential real GDP 0.30% of potential real GDP 0.30% of current real GDP

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

You need to computed the difference between current and potential GDP.
Then also compute short-run output (SRO) using the definition given in class: the difference between
Current Real GDP and Potential Real GDP (as a percentage of Potential).
Fill up the table below and answer the questions. Be careful with the units in each column.
Year
Y Current
Y Potential Current - Potential
SRO
2006
15,338.3
15,281.8
56.50
0.37
2007
15,626.0
15,579.6
2008
15,604.7
15,868.0
2009
15,208.8
16,105.7
2010
15,598.8
16,279.6

In year 2007, what was short-run output? Pick the closest value.
30% of current nominal GDP
30% of potential real GDP
0.30% of potential real GDP
0.30% of current real GDP

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