Given below are data on real GDP and potential GDP for the United States for the years 1999–2007, in billions of 2000 dollars. For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or an expansionary gap. Also calculate the year-to-year growth rates of real GDP. Can you identify the recession that occurred during this period? (LO3)

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Year Real GDP Potential GDP 1999 $ 9,470 $ 9,248 2000 $ 9,817 $ 9,590 2001 $ 9,891 $ 9,927 2002 $10,049 $10,227 2003 $10,301 $10,501 2004 $10,676 $10,777 2005 $11,003 $11,068 2006 $11,319 $11,372 2007 $11,567 $11,687 SOURCE: Potential GDP, Congressional Budget Office; real GDP, www.bea.gov.