Look at Figure 26.1. For either the UK or the EU:

a. Estimate the amplitude of the deviations from trend over the period shown.

b. Estimate the length of time between the beginning of the deviation from trend and the return to trend in each case.

Transcribed Image Text:

0 500 1,000 1,500 2,000 1960 1962 1964 1966 1968 1970 1972- 1974 2,500 3,000 1976 1978 1980 FIGURE 26.1 GDP in the UK and Europe, 1961-2017 Panel (a) shows UK GDP, measured in billions of current US dollars, on the vertical axis over the period 1960-2017. Panel (b) shows GDP across the European Union (also in billions of current US dollars) over the same time period. A trend line has been added in both panels. GDP (Current US$ billion) 3,500 1982- 1984 1986 1988. 1990 G 1992- 1994 1996 1998 2000 2002 2004 2006. 2008- 2010- 2012 2014 2013