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QUESTION 9 Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods. O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent) O The output gap after 1980 takes longer to return to zero than it did before 1980 O The output gap is always positive when the economy is in an expansion (white regions of the graph). O Answers (a) and (b) O None of the above

QUESTION 9 Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods. O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent) O The output gap after 1980 takes longer to return to zero than it did before 1980 O The output gap is always positive when the economy is in an expansion (white regions of the graph). O Answers (a) and (b) O None of the above

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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e. The output gap is negative The output gap is about zero d. a. the output gap is increasing b. The output gap is decreasing QUESTION 9 Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods. O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent) O The output gap after 1980 takes longer to return to zero than it did before 1980 O The output gap is always positive when the economy is in an expansion (white regions of the graph). O Answers (a) and (b) O None of the above run c. The macro economy is getting stronger and growing fa d. The macroeconomy is "just right" at a level that is "abou e. The macroeconomy is relatively weak and at a level bel run QUESTION 10 First, use real personal consumption expenditures Make sure you construct the graph in the order presented in this question below. (PCE) of goods (DGDSRX1) from January 2002-present to plot the real PCE of goods as an index (use LINE 1 only). Second, use real personal consumption (PCESC96) from January 2002-present to plot the real PCE of services as an index (use LINE 2 only). NOTE: Change the units of both consumption variables 2012 US dollars" to "Index (Scale value to 100 for chosen date)." Using indexes will make both lines directly comparable with base year 2002=100, properly re growth over time. Lastly, use the implicit price deflator for personal consumption expenditures (PCE) of goods (DGDSRD3Q086SBEA) and the implicit price deflator for personal expenditures (PCE) of services (DSERRD3Q086SBEA) to construct the relative price (ratio) of goods versus the price of services (use LINE 3 only for the ratio) ratio by 100. The base year for each deflator is 2012-100, so the base year for the ratio will be the same. Data for the price deflators starts in 1947, so change graph to start in Jan 2002 (found above the graph in FRED next to the "Edit Graph" button, or using the slider at the bottom near the time periods). Selected Answer: fredgraph (11).png Remove Attach File Click Save and Submit to save and submit. Click Save All A
Transcribed Image Text:e. The output gap is negative The output gap is about zero d. a. the output gap is increasing b. The output gap is decreasing QUESTION 9 Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods. O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent) O The output gap after 1980 takes longer to return to zero than it did before 1980 O The output gap is always positive when the economy is in an expansion (white regions of the graph). O Answers (a) and (b) O None of the above run c. The macro economy is getting stronger and growing fa d. The macroeconomy is "just right" at a level that is "abou e. The macroeconomy is relatively weak and at a level bel run QUESTION 10 First, use real personal consumption expenditures Make sure you construct the graph in the order presented in this question below. (PCE) of goods (DGDSRX1) from January 2002-present to plot the real PCE of goods as an index (use LINE 1 only). Second, use real personal consumption (PCESC96) from January 2002-present to plot the real PCE of services as an index (use LINE 2 only). NOTE: Change the units of both consumption variables 2012 US dollars" to "Index (Scale value to 100 for chosen date)." Using indexes will make both lines directly comparable with base year 2002=100, properly re growth over time. Lastly, use the implicit price deflator for personal consumption expenditures (PCE) of goods (DGDSRD3Q086SBEA) and the implicit price deflator for personal expenditures (PCE) of services (DSERRD3Q086SBEA) to construct the relative price (ratio) of goods versus the price of services (use LINE 3 only for the ratio) ratio by 100. The base year for each deflator is 2012-100, so the base year for the ratio will be the same. Data for the price deflators starts in 1947, so change graph to start in Jan 2002 (found above the graph in FRED next to the "Edit Graph" button, or using the slider at the bottom near the time periods). Selected Answer: fredgraph (11).png Remove Attach File Click Save and Submit to save and submit. Click Save All A
WVU Mail 7.5 5.0 ED-((Real Gross Domestic Product-Real Potential Gross Domestic Product)/Real Potential Gross Domestic Product)*100 2.5 0.0 -2.5 -6.0 7.5 10.0 -12.5 Microsoft Word 1950 ang 1955 W 1960 ENGL102 ECON 202 Shaded areas indicate U.S. recessions. fredgraph (11).png 1965 1970 NY Times WSJ WSJ 1975 fredgraph (10).png 1980 1985 Sources: BEA; CBO 1990 fredgraph (9).png 1995 2000 2005 Critical Review.pdf wwww 2010 2015 2020 fred.stlouisfed.org
Transcribed Image Text:WVU Mail 7.5 5.0 ED-((Real Gross Domestic Product-Real Potential Gross Domestic Product)/Real Potential Gross Domestic Product)*100 2.5 0.0 -2.5 -6.0 7.5 10.0 -12.5 Microsoft Word 1950 ang 1955 W 1960 ENGL102 ECON 202 Shaded areas indicate U.S. recessions. fredgraph (11).png 1965 1970 NY Times WSJ WSJ 1975 fredgraph (10).png 1980 1985 Sources: BEA; CBO 1990 fredgraph (9).png 1995 2000 2005 Critical Review.pdf wwww 2010 2015 2020 fred.stlouisfed.org
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