macro 1 assignment.docx - Parvinder Kaur Bhullar Student Id:2018090173 Put Unit 2 BUSI 2003 Macroeconomics in Global Context Yorkville University –

macro 1 assignment.docx - Parvinder Kaur Bhullar Student...

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Parvinder Kaur Bhullar Student Id :2018090173 Put Unit # 2 BUSI 2003 Macroeconomics in Global Context Yorkville University – Vancouver Campus Instructor: Iqtidar shah Submission Date:24 April 2019
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PUT SHORT TITLE IN CAPS HERE Real GDP (billions of $) Output Gap (% of potential) Unemployment Rate (% of labour force) YEAR Actual Potential 2003 1172 1192 -1.68% 11.0 2004 1188 1200 -1.00% 10.0 2005 1201 1209 -0.66% 9.0 2006 1215 1219 -0.33% 8.2 2007 1230 1226 0.33% 7.6 2008 1244 1240 0.32% 7.2 2009 1257 1251 0.48% 7.1 2010 1269 1262 0.55% 7.3 2011 1274 1274 0.00% 7.6 a.) Output gap is calculated in above chart. b.) Potential output is the level of output produced when factors of production are fully employed. The output gap is difference between actual and potential output. (ragan economics 2013 pg. 493) GDP can exceed potential GDP when there is an economic boom associated with high employment and high output. 1
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PUT SHORT TITLE IN CAPS HERE When actual GDP exceeds potential GDP, inflationary pressure usually ensues, causing concern for any government that is committed to keeping the inflation rate low (ragan fifteenth edition) c.) In Periods when real GDP Falls from Year to Year are called as Recessions.
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