Suppose that potential GDP in a small country is $10,000 in year 1 and real GDP is
Question:
a. Calculate potential GDP for the next six years.
b. If real GDP in year 4 is $10,500, what is the output gap?
c. If real GDP in year 6 is $11,700, what is the output gap?
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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