1. If actual output is $11.5 trillion and potential output is $12.9 trillion, what is the approximate output gap? Describe what a negative output gap means and what a large positive output gap could indicate.
2. If the actual inflation rate is 4.5% and the idea inflation rate is 2%, what is the inflation gap? What does the inflation gap indicate?
3. If the unemployment rate is 5.5% and the natural rate of unemployment is 5.2%, what is the unemployment gap? What is the relationship between the unemployment gap and the output gap?