Question: Given below are data on real GDP and potential GDP for the United States for the years 20032013, in billions of 2009 dollars. For each
Given below are data on real GDP and potential GDP for the United States for the years 20032013, in billions of 2009 dollars. For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or an expansionary gap. Also calculate the year-to-year growth rates of real GDP.
| Year | Real GDP | Potential GDP | Output gap | Type of gap | Growth rate of real GDP |
| 2003 | $13,271.1 | $13,520.3 | % | (Click to select)expansionaryrecessionary |
|
| 2004 | $13,773.5 | $13,874.2 | % | (Click to select)expansionaryrecessionary | % |
| 2005 | $14,234.2 | $14,203.6 | % | (Click to select)expansionaryrecessionary | % |
| 2006 | $14,613.8 | $14,540.5 | % | (Click to select)recessionaryexpansionary | % |
| 2007 | $14,873.7 | $14,890.2 | % | (Click to select)recessionaryexpansionary | % |
| 2008 | $14,830.4 | $15,225.9 | % | (Click to select)expansionaryrecessionary | % |
| 2009 | $14,418.7 | $15,495.4 | % | (Click to select)recessionaryexpansionary | % |
| 2010 | $14,783.8 | $15,706.1 | % | (Click to select)expansionaryrecessionary | % |
| 2011 | $15,020.6 | $15,922.3 | % | (Click to select)recessionaryexpansionary | % |
| 2012 | $15,369.2 | $16,168.2 | % | (Click to select)recessionaryexpansionary | % |
| 2013 | $15,710.3 | $16,431.4 | % | (Click to select)recessionaryexpansionary | % |
SOURCE: Potential GDP: Congressional Budget Office; real GDP, Bureau of Economic Analysis. Recessionary gap is identified during
| 2004 - 2005 ; 2007 - 2009 | |
| 2003 - 2004 and 2007 - 2013 | |
| 2003 - 2004 ; 2007 - 2009 | |
| 2003 - 2013 | |
| 2007 - 2009 |
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