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

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter19: The Macroeconomic Perspective

Section: Chapter Questions

Problem 15RQ: What is the difference between a series of economic data over time measured in nominal terms versus...

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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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