Figure 21.2 on page 712 shows that the growth of potential GDP slowed following the recession of

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Figure 21.2 on page 712 shows that the growth of potential GDP slowed following the recession of 2007–2009. Use the data in the following table to discuss how movements in potential GDP can be explained by the analysis in this chapter.

Investment as a Annual Growth in Labor Productivity Year Percentage of GDP 2006 19.4% 0.9% 2007 18.3 1.6 16.5 0.8 2008 3

Figure 21.2

Real GDP (billions of 2009 dollars) Actual Real GDP Potential GDP $17,000 16,000 15,000 14,000 Recession of 13,000 2007-

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Economics

ISBN: 978-0134738321

7th edition

Authors: R. Glenn Hubbard, Anthony Patrick O Brien

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Question Posted: Aug 23, 2019 12:41 PM

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Figure 21.2 on page 712 shows that the growth of potential GDP slowed following the recession of

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After the Great Recession investment became a s...View the full answer

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