During the 2007-2009 recession,
A) real GO and real GDP fell by roughly the same amount.
B) real GDP fell by roughly twice the amount that real GO fell.
C) real GDP fell, while real GO remained unchanged.
D) real GO fell by roughly twice the amount that real GDP fell.

Question

Quizplus · Accepted Answer

During the 2007-2009 recession, real Gross Output (GO) fell by roughly twice the amount that real GDP fell. This is because GO includes all stages of production, making it more sensitive to economic fluctuations than GDP, which only measures the final output.

During the 2007-2009 Recession