Real GDP decreases during
A) the movement from trough to peak.
B) the movement from below potential GDP back to potential GDP.
C) the movement from peak to trough.
D) a decrease in unemployment.

Question

Quizplus · Accepted Answer

Real GDP decreases during the movement from peak to trough, which is a phase of the business cycle characterized by a decline in economic activity and output. This period is often associated with recessions.

Real GDP Decreases During