Essay
Suppose that,in 2013,potential GDP in the nation of Bologna is $150 000,real GDP is $138 000,and potential GDP grows at a rate of 5% per year.
a. Calculate potential GDP for the next 3 years.
b. If real GDP is $143 000 in 2014,what is the output gap?
c. If real GDP is $160 000 in 2015,what is the output gap?
d. If real GDP is $182 000 in 2016,what is the output gap?
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a. Potential GDP in 2014 = $150 000 × 1....View Answer
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