What is the correct option for answer 9 e. The output gap is negativeThe output gap is about zerod.a.the output gap is increasingb.The output gap is decreasingQUESTION 9Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods.O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent)O The output gap after 1980 takes longer to return to zero than it did before 1980O The output gap is always positive when the economy is in an expansion (white regions of the graph).O Answers (a) and (b)O None of the aboverunc. The macro economy is getting stronger and growing fad. The macroeconomy is "just right" at a level that is "aboue. The macroeconomy is relatively weak and at a level belrunQUESTION 10First, use real personal consumption expenditures Make sure you construct the graph in the order presented in this question below.(PCE) of goods (DGDSRX1) from January 2002-present to plot the real PCE of goods as an index (use LINE 1 only). Second, use real personal consumption(PCESC96) from January 2002-present to plot the real PCE of services as an index (use LINE 2 only). NOTE: Change the units of both consumption variables2012 US dollars" to "Index (Scale value to 100 for chosen date)." Using indexes will make both lines directly comparable with base year 2002=100, properly regrowth over time.Lastly, use the implicit price deflator for personal consumption expenditures (PCE) of goods (DGDSRD3Q086SBEA) and the implicit price deflator for personalexpenditures (PCE) of services (DSERRD3Q086SBEA) to construct the relative price (ratio) of goods versus the price of services (use LINE 3 only for the ratio)ratio by 100. The base year for each deflator is 2012-100, so the base year for the ratio will be the same. Data for the price deflators starts in 1947, so changegraph to start in Jan 2002 (found above the graph in FRED next to the "Edit Graph" button, or using the slider at the bottom near the time periods).Selected Answer: fredgraph (11).png RemoveAttach FileClick Save and Submit to save and submit. Click Save All A WVU Mail7.55.0ED-((Real Gross Domestic Product-Real Potential Gross Domestic Product)/Real Potential Gross Domestic Product)*1002.50.0-2.5-6.07.510.0-12.5Microsoft Word1950ang1955W1960ENGL102 ECON 202Shaded areas indicate U.S. recessions.fredgraph (11).png19651970NY Times WSJ WSJ1975fredgraph (10).png19801985Sources: BEA; CBO1990fredgraph (9).png199520002005Critical Review.pdfwwww201020152020fred.stlouisfed.org

Question

What is the correct option for answer 9 e. The output gap is negativeThe output gap is about zerod.a.the output gap is increasingb.The output gap is decreasingQUESTION 9Compare and contrast the output gap before and after 1980 and select the statement that best describes the difference between the two periods.O The average output gap before 1980 is higher (around zero) than after 1980 (around -2.5 percent)O The output gap after 1980 takes longer to return to zero than it did before 1980O The output gap is always positive when the economy is in an expansion (white regions of the graph).O Answers (a) and (b)O None of the aboverunc. The macro economy is getting stronger and growing fad. The macroeconomy is &#34;just right&#34; at a level that is &#34;aboue. The macroeconomy is relatively weak and at a level belrunQUESTION 10First, use real personal consumption expenditures Make sure you construct the graph in the order presented in this question below.(PCE) of goods (DGDSRX1) from January 2002-present to plot the real PCE of goods as an index (use LINE 1 only). Second, use real personal consumption(PCESC96) from January 2002-present to plot the real PCE of services as an index (use LINE 2 only). NOTE: Change the units of both consumption variables2012 US dollars&#34; to &#34;Index (Scale value to 100 for chosen date).&#34; Using indexes will make both lines directly comparable with base year 2002=100, properly regrowth over time.Lastly, use the implicit price deflator for personal consumption expenditures (PCE) of goods (DGDSRD3Q086SBEA) and the implicit price deflator for personalexpenditures (PCE) of services (DSERRD3Q086SBEA) to construct the relative price (ratio) of goods versus the price of services (use LINE 3 only for the ratio)ratio by 100. The base year for each deflator is 2012-100, so the base year for the ratio will be the same. Data for the price deflators starts in 1947, so changegraph to start in Jan 2002 (found above the graph in FRED next to the &#34;Edit Graph&#34; button, or using the slider at the bottom near the time periods).Selected Answer: fredgraph (11).png RemoveAttach FileClick Save and Submit to save and submit. Click Save All A WVU Mail7.55.0ED-((Real Gross Domestic Product-Real Potential Gross Domestic Product)/Real Potential Gross Domestic Product)*1002.50.0-2.5-6.07.510.0-12.5Microsoft Word1950ang1955W1960ENGL102 ECON 202Shaded areas indicate U.S. recessions.fredgraph (11).png19651970NY Times WSJ WSJ1975fredgraph (10).png19801985Sources: BEA; CBO1990fredgraph (9).png199520002005Critical Review.pdfwwww201020152020fred.stlouisfed.org

Accepted Answer

As the actual data is not given, so we will answer based on the diagram provided