You are reading a newspaper article that refers to expansions and contractions in the economy.The references are to changes in

Question

Quizplus · Accepted Answer

Expansions and contractions refer to changes in real GDP, which is a measure of the total economic output of a country. During expansions, the economy is growing and producing more goods and services, while during contractions, the economy is shrinking and producing less. This is often measured by changes in real GDP, which adjusts for inflation to give a more accurate picture of the economy's performance. Wage rates, inflation rates, movements in exchange rates, and investment expectations can all be impacted by changes in real GDP, but they are not the primary indicators of economic expansions and contractions.

You Are Reading a Newspaper Article That Refers to Expansions