Answered: Refer to the following table. What was…

Refer to the following table. What was the approximate output gap in 1971? Potential GDP Real GDP (billions of $) (billions of $) Year 1970 1971 1972 1973 1974 93 96 105 109 100 90 94 99 104 107

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

Refer to the following table. What was the approximate output gap in 1971?
Potential GDP
Real GDP
(billions of $)
(billions of $)
Year
1970
1971
1972
1973
1974
3.3%
2.1%
6.1%
-6.5%
93
96
105
109
100
90
94
99
104
107

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