The given table shows hypothetical data for five economies. Real GDP is measured in millions of dollars. Complete parts (a) through (e). a. Fill in the missing data in the table. Which economies have an inflationary gap? (Select all that apply.) A. Economy 5 B. Economy 1 C. Economy 2 D. Economy 3 E. Economy 4 Which economies have a recessionary gap? (Select all that apply.) A. Economy 4 B. Economy 5 C. Economy 3 D. Economy 2 E. Economy 1 b. Which economies likely have the most unused capacity? Explain. likely have the most unused capacity, because in these economies c. In which economies are labour and other factors of production in excess demand? (Select all that apply.) A. Economy 5 B. Economy 1 C. Economy 2 D. Economy 3 E. Economy 4 Potential GDP (Y") 74,000 140,000 50,000 4,400 Economy 4 Economy 5 8,400 (Round your responses to one decimal place.) 9,200 Real GDP Economy 1 79,000 Economy 2 157,000 Economy 3 44,000 4,400 Output Gap (% of Y") 6.8% 12.1% -12% 0% -8.7% Rate of Wage Change +0.9% +1.9% -0.5% 0.0% -0.2%

The given table shows hypothetical data for five economies. Real GDP is measured in millions of dollars. Complete parts (a) through (e). a. Fill in the missing data in the table. Which economies have an inflationary gap? (Select all that apply.) A. Economy 5 B. Economy 1 C. Economy 2 D. Economy 3 E. Economy 4 Which economies have a recessionary gap? (Select all that apply.) A. Economy 4 B. Economy 5 C. Economy 3 D. Economy 2 E. Economy 1 b. Which economies likely have the most unused capacity? Explain. likely have the most unused capacity, because in these economies c. In which economies are labour and other factors of production in excess demand? (Select all that apply.) A. Economy 5 B. Economy 1 C. Economy 2 D. Economy 3 E. Economy 4 Potential GDP (Y") 74,000 140,000 50,000 4,400 Economy 4 Economy 5 8,400 (Round your responses to one decimal place.) 9,200 Real GDP Economy 1 79,000 Economy 2 157,000 Economy 3 44,000 4,400 Output Gap (% of Y") 6.8% 12.1% -12% 0% -8.7% Rate of Wage Change +0.9% +1.9% -0.5% 0.0% -0.2%

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 6CQQ

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