The figure given below represents the business cycle of an economy.?Figure 7.1

-Refer to Figure 7.1. The overall upward trend in real GDP reflected by this figure implies that:
A) the real GDP gap is widening over time.
B) cyclical unemployment is growing at positive rates.
C) consumer purchasing power is falling over time.
D) on average, labor productivity is declining.
E) expansionary phases outweigh contractionary phases in the economy over time.

Question

The figure given below represents the business cycle of an economy.?Figure 7.1
 
-Refer to Figure 7.1. The overall upward trend in real GDP reflected by this figure implies that:
A) the real GDP gap is widening over time. 
B) cyclical unemployment is growing at positive rates. 
C) consumer purchasing power is falling over time. 
D) on average, labor productivity is declining. 
E) expansionary phases outweigh contractionary phases in the economy over time.

Quizplus · Accepted Answer

The Answer is E

The Figure Given Below Represents the Business Cycle of an Economy.?Figure