ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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an increase in Real GDP over time.
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only economic recessions.
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only economic expansions.
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None of the above
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Detailed explanation-1: -The trend lines show that while nominal GDP has tended to fall over the last 25 years, once adjusted for prices, the real GDP growth rate has tended to rise. Finally, we will add a moving average trend line to the R&D expenditure data.
Detailed explanation-2: -The GDP growth rate changes during the four phases of the business cycle: peak, contraction, trough, and expansion. In an expanding economy, the GDP growth rate will be positive because businesses are growing and creating jobs for greater productivity.
Detailed explanation-3: -The graph illustrates that both real GDP and real GDP per capita have substantially increased since 1900. Real GDP is important because it is highly correlated with other measures of economic activity, like employment and unemployment. When real GDP rises, so does employment.
Detailed explanation-4: -A growth trend line appears on a business cycle graph and shows the overall growth trend of economic activity over time.
Detailed explanation-5: -Real gross domestic product (real GDP) is a measure of the value of all final goods and services produced during a particular year or period, adjusted to eliminate the effects of price changes. The economy follows a path of expansion, then contraction, then expansion again.