Question Details

The series of ups and downs the economy tends to move in is called



1) In any year, real GDP
A) must always be less than potential GDP.
B) might be greater or less than potential GDP.
C) will always be greater than potential GDP because of the tendency of nations to incur
inflation.
D) always equals potential GDP.
2) The relationship between real GDP and potential GDP is that
A) real GDP always equals potential GDP.
B) real GDP never equals potential GDP.
C) real GDP fluctuates about potential GDP.
D) real GDP is always below potential GDP.

3) In any year, real GDP
A) must always be less than potential GDP.
B) might be greater or less than potential GDP.
C) will be greater than potential GDP if the inflation rate is positive.
D) always equals potential GDP.
4) ________ refers to a period when the ________ decreases.
A) Recession; growth rate of nominal GDP
B) Recession; growth rate of output per person
C) Productivity growth slowdown; growth rate of real GDP
D) Productivity growth slowdown; growth rate of output per person
5) The series of ups and downs the economy tends to move in is called
A) the business cycle.
B) a recession.
C) a depression.
D) economic growth.



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