For the study of economic growth,it is most helpful to examine movements in ________; for the study of business cycles,it is most helpful to examine movements in ________.
A) trend GDP; deviations from trend in GDP
B) deviations from trend in GDP; deviations from trend in GDP
C) trend GDP; trend GDP
D) trend income; deviation from trend in income
E) deviations from trend in GDP; trend GDP

Question

Quizplus · Accepted Answer

For the study of economic growth, it is most helpful to examine movements in trend GDP, as this allows for an analysis of long-term changes in the economy. For the study of business cycles, it is most helpful to examine movements in deviations from trend in GDP, as this allows for an analysis of the fluctuations in economic activity over shorter periods of time.

For the Study of Economic Growth,it Is Most Helpful to Examine