The Following Table Shows Real GDP and Potential Real GDP

question 88

Multiple Choice

The following table shows real GDP and potential real GDP for the years 2000-2012. Refer to this table when answering
Table 10.1 ($ billions)
(Source: Federal Reserve Economic Data, St. Louis Federal Reserve)
$$\begin{array} { c c c } \hline & \begin{array} { c } \text { Potential } \\\text { GDP }\end{array} & \text { Real GDP } \\\hline 2000 & 10,909.7 & 11,216.4 \\2001 & 11,304.5 & 11,337.5 \\2002 & 11,674.3 & 11,543.1 \\2003 & 12,003.6 & 11,836.4 \\2004 & 12,290.0 & 12,246.9 \\2005 & 12,569.2 & 12,623.0 \\2006 & 12,864.6 & 12,958.5 \\2007 & 13,177.7 & 13,206.4 \\2008 & 13,485.0 & 13,161.9 \\2009 & 13,745.4 & 12,758.0 \\2010 & 13,950.3 & 13,063.0 \\2011 & 14,166.6 & 13,299.1 \\2012 & 14,411.0 & 13,593.2 \\\hline\end{array}$$
-According to the data in Table 10.1, what years did the Bush administration enjoy an expansionary gap?

• A) 2005 and 2006
• B) 2007-2009
• C) 2001, 2005, 2006
• D) 2002, 2003, 2008
• E) 2011-2012

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Definitions:

Right Atrium

The right atrium is one of the four chambers of the heart, responsible for receiving deoxygenated blood from the body through the venae cavae and pumping it into the right ventricle.

Right Ventricle

The chamber within the heart that is responsible for pumping deoxygenated blood to the lungs via the pulmonary artery.

Left Atrium

One of the four chambers of the heart, which receives oxygenated blood from the lungs and pumps it to the left ventricle.

Pulse Pressure

The difference between the systolic and diastolic pressures, reflecting the stroke volume and compliance of the arterial system.