The following data give the dates of successive turning points in U.S.economic activity and the corresponding levels of real GDP at the time: $$\begin{array} { c c c }
\text { Turning Point } & \text { Date } & \begin{array} { c }
\text { Real GDP } \
\text { (1996 \$ billions) }
\end{array} \
\text { (A) } & \text { Feb. } 1961 & 2352.9 \
\text { (B) } & \text { Dec. } 1969 & 3571.4 \
\text { (C) } & \text { Nov. } 1970 & 3566.5 \
\text { (D) } & \text { Nov. } 1973 & 4151.1 \
\text { (E) } & \text { Mar. } 1975 & 4010.0
\end{array}$$
Which of the following periods was an expansion?

Question

The following data give the dates of successive turning points in U.S.economic activity and the corresponding levels of real GDP at the time: $$\begin{array} { c c c } 
\text { Turning Point } & \text { Date } & \begin{array} { c } 
\text { Real GDP } \
\text { (1996 \$ billions) }
\end{array} \
\text { (A) } & \text { Feb. } 1961 & 2352.9 \
\text { (B) } & \text { Dec. } 1969 & 3571.4 \
\text { (C) } & \text { Nov. } 1970 & 3566.5 \
\text { (D) } & \text { Nov. } 1973 & 4151.1 \
\text { (E) } & \text { Mar. } 1975 & 4010.0
\end{array}$$
Which of the following periods was an expansion?

Quizplus · Accepted Answer

An expansion is a period of increasing economic growth, and it is defined as the period between a trough (the end of a recession) and a peak (the beginning of a recession). In this case, the trough for the previous recession occurred in February 1961, and the peak for the subsequent recession occurred in November 1970. Therefore, the period between February 1961 and December 1969 is an expansion.

The Following Data Give the Dates of Successive Turning Points