(a) Suppose that real GDP is currently $97 billion per year and natural real GDP is currently...

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(a) Suppose that real GDP is currently $97 billion per year and natural real GDP is currently $100 billion. Measured as a percentage, what is the GDP gap?
(b) Suppose natural real GDP is growing by $4 billion per year. By how much must real GDP have risen after two years to close the GDP gap?
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Macroeconomics

ISBN: 978-0138014919

12th edition

Authors: Robert J Gordon

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