Refer to the information provided in Figure 17.1 below to answer the questions that follow.
Figure 17.1
-Refer to Figure 17.1.An economic decline is represented by a movement from
A)point A to point B.
B)point D to point A.
C)point C to point A.
D)point B to point A.

Question

Refer to the information provided in Figure 17.1 below to answer the questions that follow.
  Figure 17.1
-Refer to Figure 17.1.An economic decline is represented by a movement from
A)point A to point B. 
B)point D to point A. 
C)point C to point A. 
D)point B to point A.

Quizplus · Accepted Answer

As shown in the figure, a movement from point C to point A represents an economic decline, characterized by a decrease in real GDP and an increase in unemployment. This is indicated by the shift from the potential GDP line to the actual GDP line, which intersects the vertical axis at a lower level (indicating a decrease in real GDP) and the horizontal axis at a higher level (indicating an increase in unemployment).

Refer to the Information Provided in Figure 17