Calculate the output gap as a percentage of potential gdp

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Reference no: EM13966222

Given below are data on real GDP and potential GDP for the United States for the years 2003-2013, 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

Reference no: EM13966222

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