-The Table Below Displays the United States' Potential and Actual

question 62

Essay

-The table below displays the United States' potential and actual output for six select months between 1960 and 2009.In which month does the economy have the largest expansionary gap? Largest recessionary gap?
Table 9.1: Actual and Potential Output,in billions $s

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Definitions:

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, used to calculate the cost of goods sold.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Net Purchases

Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.