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The Table Shows the Percentage Difference Between Real and Potential

question 68

Essay

The table shows the percentage difference between real and potential GDP and the rate of inflation for the years 2006 through 2015. If there was a presidential election in the year 2007, would these data support the view that there was a political business cycle during this period?
 Year  Percentage Difference  Between Realand  Potential GDP  Inflation Rate 20060.3%3.2%20070.2%2.9%20081.8%3.8%20096.2%0.3%20104.6%1.6%20114.0%3.1%20123.0%2.1%20132.9%1.5%20142.1%1.6%20151.2%0.1%\begin{array}{|c|c|c|}\hline \text { Year } & \begin{array}{c}\text { Percentage Difference } \\\text { Between Realand } \\\text { Potential GDP }\end{array} & \text { Inflation Rate } \\\hline 2006 & 0.3 \% & 3.2 \% \\\hline 2007 & 0.2 \% & 2.9 \% \\\hline 2008 & -1.8 \% & 3.8 \% \\\hline 2009 & -6.2 \% & -0.3 \% \\\hline 2010 & -4.6 \% & 1.6 \% \\\hline 2011 & -4.0 \% & 3.1 \% \\\hline 2012 & -3.0 \% & 2.1 \% \\\hline 2013 & -2.9 \% & 1.5 \% \\\hline 2014 & -2.1 \% & 1.6 \% \\\hline 2015 & -1.2 \% & 0.1 \% \\\hline\end{array}

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Definitions:

Single Mother-led Families

Households headed by a female parent who is not married or partnered, raising her children alone.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Unpaid Work

refers to tasks and services performed without monetary compensation, often inclusive of household chores, caregiving, and volunteer efforts.

Chilly Climate

An environment, often in educational or workplace settings, where women and minorities feel marginalized, unwelcome, or treated less favorably due to subtle forms of discrimination.

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