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. Which time period is most likely to be associated with an economic expansion?
A) Years 1 to 2
B) Years 1 to 3
C) Year 4 only
D) Years 1 to 4
E) Years 3 to 4

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. Which time period is most likely to be associated with an economic expansion?
A) Years 1 to 2 
B) Years 1 to 3 
C) Year 4 only 
D) Years 1 to 4 
E) Years 3 to 4

Quizplus · Accepted Answer

Years 3 to 4 are associated with an economic expansion as the GDP gap decreases from $80 billion to $40 billion, indicating that the economy is growing and producing more goods and services. In the other time periods, the GDP gap either remains constant or increases, indicating economic stagnation or contraction.

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