The degree to which _____ declines during a recession or increases during an expansion depends on the amount by which the AD and/or AS curves shift.
A) real GDP
B) government tax revenue
C) the money supply
D) real interest rate
E) the consumer price index

Question

Quizplus · Accepted Answer

The degree to which real GDP declines during a recession or increases during an expansion is directly related to shifts in the Aggregate Demand (AD) and Aggregate Supply (AS) curves, as these shifts determine the overall level of economic output.

The Degree to Which _____ Declines During a Recession or Increases