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Assume ACTUAL GDP five years ago was $18 trillion and the growth rate over the last five years was 3%. Assume also that POTENTIAL GDP
Assume ACTUAL GDP five years ago was $18 trillion and the growth rate over the last five years was 3%. Assume also that POTENTIAL GDP five years ago was $19 trillion and potential GDP grows 2.3% per year. What is the OUTPUT GAP? Calculate the output gap as potential GDP minus actual GDP. IMPORTANT: Enter your answer in trillions to two decimals and without the dollar sign. For instance, if your answer is $0.556 trillion, enter 0.56. If you enter the answer incorrectly but otherwise get the problem correct, then contact me and I will provide 1/2 credit (as directions weren't followed but you did the calculation correctly). It is important to have attention to detail in
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