Question

Please solve for Growth rate of real GDP and show work

Given below are data on real GDP and potential GDP for the nation of Anaziland for the years 2009–2013, in billions of 2009 currency. For each year, calculate the output gap as a percentage of potential GDP and state whether the gap is a recessionary gap or an expansionary gap. Also calculate the year-to-year growth rates of real GDP.

Instructions: Enter your response as a percentage rounded 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	Output gap	Type of gap	Growth rate of real GDP
2009	13,250	13,660	-3.00%	recessionary	-----
2010	13,990	13,300	5.19%	expansionary	%
2011	14,450	13,400	7.84%	expansionary	%
2012	13,880	14,060	-1.28%	recessionary	%
2013	14,080	14,500	-2.90%	recessionary	%

Answer 1

Growth rate of real GDP

2010 = ((13,990-13.250)/13,250))*100= (740/13,250)x100=5.58%

2011 = ((14,450-13,990)/13,990)*100= (460/13,990)x100=3.29%

2012=((13,880-14,450)/14,450*100= (-570/14,450)x100=-3.94%

2013=((14,080-13,880)/13,880*100= (200/13,880)x100=1.44%%