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
|