Given below are data on real GDP and potential GDP for the nation of Anaziland f

Question

Given below are data on real GDP and potential GDP for the nation of Anaziland for the years 2009–2013, in billions of 2009 currency. 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.

Given below are data on real GDP and potential GDP for the nation of Anaziland for the years 2009-2013, in billions of 2009 currency. For each year, calculate the output gap as a percentage of potential GDP and state real GDP whether the gap is a recessionary gap or an expansionary gap. Also calculate the year-to-year growth rates of Instructions: Enter your response as a percentage rounded two decimal places.lf you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers ype of gap recessionary expansionary $14.93 expansionary 3.49 % rowth rate of real GDP ear Real GDP Potential utput gap GDP 12,900 009 12,570 3.3 0% 010 13,190 12,700 -3.86 % 011 13,650 12,920 -5.65 % 2012 13,320 13,540 1.62 % recessionary -2.42 0% 2013 13,280 13,900 4.46 3% recessionary -0.30 0% A Recessionary gap is identified during 2009 - 2010; 2013 2010 2011 2011 2012 2009; 2012 -2013

Explanation / Answer

The ones with negative output gap are recessionary (2009,2012,2013) , while ones with positive output gap are expansionary (2010,2011).

Year Real GDP Potential GDP Gap Gap as % of potential GDP Real GDP growth 2009 12570 12900 -330 -2.56% 2010 13190 12700 490 3.86% 4.93% 2011 13650 12920 730 5.65% 3.49% 2012 13320 13540 -220 -1.62% -2.42% 2013 13280 13900 -620 -4.46% -0.30%

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