Given below is the the real GDP and potential GDP for the fictitious country "Alpha." A. Use the date to determine the the year-to-year growth rates of real GDP, the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or an expansionary gap.
Instructions: Enter your responses as a percentage rounded to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
Year Real GDP Potential GDP Real GDP growth Output gap Type of gap
2005 $17,500 $17,300 %
2006 $18,200 $17,800 % %
2007 $18,500 $18,300 % %
2008 $18,400 $18,800 % %
2009 $18,200 $19,300 % %
2010 $18,600 $19,700 % %
2011 $19,200 $20,100 % %
2012 $19,900 $20,500 % %
B. Use the data above to graph Alpha's real GDP between 2005 and 2012.
Instructions: Use the tool 'real GDP' to graph the 8 real GDP values from year 2005 until 2012.
C. Alpha experienced a peak in the business cycle in the following year(s):.
a. 2005 and 2012
b. 2005
c. 2012
d. 2007
e. 2007 and 2012
D. Alpha experienced a trough in the business cycle in the following year(s):.
a. 2009 and 2012
b. 2007
c. 2010
d. 2009
e. 2005 and 2010