Use the accompanying table to answer the following questions. a. Calculate the output gap for each year.

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Use the accompanying table to answer the following questions.

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a. Calculate the output gap for each year.

b. What does it mean when the output gap is negative? What does it mean when it is positive?

c. For each year, calculate how much the output gap changed. Compare this to the growth rate of actual output that year, less the growth rate of potential output.

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Principles Of Economics

ISBN: 9781319330156,9781319419769

2nd Edition

Authors: Betsey Stevenson, Justin Wolfers

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Question Posted: Feb 20, 2024 01:00 AM

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Use the accompanying table to answer the following questions. a. Calculate the output gap for each year.

Question:

Actual and potential output in the United States Year Real GDP (trillions) 2016 2017 2018 2019 2020 $17.68 $18.08 $18.61 $19.03 $18.38 Potential Output (trillions) $18.02 $18.32 $18.65 $19.02 $19.38

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Principles Of Economics

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