(Answered) 1 if actual output is 115 trillion and potential output is

Finance

1. If actual output is $11.5 trillion and potential output is $12.9 trillion, what is the approximate output gap? Describe what a negative output gap means and what a large positive output gap could indicate.

2. If the actual inflation rate is 4.5% and the idea inflation rate is 2%, what is the inflation gap? What does the inflation gap indicate?

3. If the unemployment rate is 5.5% and the natural rate of unemployment is 5.2%, what is the unemployment gap? What is the relationship between the unemployment gap and the output gap?

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