The figure given below reports the GDP gap experienced by a country for four years in billions of dollars.
Figure 7.2

-Refer to Figure 7.2. The difference between potential and actual GDP consistently widens between points:
A) A and B.
B) B and D.
C) A and D.
D) B and C.
E) C and D.

Question

The figure given below reports the GDP gap experienced by a country for four years in billions of dollars.
Figure 7.2
 
-Refer to Figure 7.2. The difference between potential and actual GDP consistently widens between points:
A) A and B. 
B) B and D. 
C) A and D. 
D) B and C. 
E) C and D.

Quizplus · Accepted Answer

The difference between potential and actual GDP consistently widens between points A and B because the economy is in a recession during this period.

The Figure Given Below Reports the GDP Gap Experienced by a Country