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Computing SRO with real data

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Computing SRO with real data. We are going to use FRED data to calculate Short-run Output (SRO), also known as the Output Gap. I decided to be a nice guy and did the dirty work for you. I downloaded data for Real GDP (i.e. Y Current in billions of chained 2012 dollars) and Real Potential GDP (i.e. Y Potential in billions of chained 2012 dollars) at an annual frequency You need to computed the difference between current and potential GDP. Then also compute short-run output (SRO) using the definition given in class: the difference between Current Real GDP and Potential Real GDP (as a percentage of Potential). Fill up the table below and answer the questions. Be careful with the units in each column. Year Y Current Y Potential Current - Potential SRO 2006 15,338.3 15,281.8 56.50 0.37 2007 15,626.0 15,579.6 2008 15,604.7 15,868.0 2009 15,208.8 16,105.7 2010 15,598.8 16,279.6 1 point Consider year 2007. What was the difference between current real GDP and potential (Y current - Y Potential) in billions of dollars? Pick the closest value. 0.37% 37% $56 billion $46 billion In year 2007, what was short-run output? Pick the closest value. * 1 point 30% of current nominal GDP 0.30% of current real GDP 0.30% of potential real GDP 30% of potential real GDP
1 point Consider year 2008. What was the difference between current real GDP and potential (Y current - Y Potential) in billions of dollars? Pick the closest value. * Negative $263 billion. Positive $263 billion. 30% of potential real GDP 30% of current real GDP In year 2008, what was short-run output? Pick the closest value.* 1 point $263 trillion. Negative 1.66% of potential real GDP. Positive 1.66% of current nominal GDP. Negative 1.66% of current real GDP. 1 point According to your calculations, what is the lowest short-run output between years 2006 and 2010? In what year did it happen? Pick the most accurate answer. * In 2007. In that year SRO was negative 7.7%. In 2009. In that year SRO was plus 5.6%. In 2009. In that year SRO was negative 6.3%. In 2009. In that year SRO was negative 5.6%