Figure 8-4
-Employing Figure above in the time periods t0 to t1, and t4 to t5 real GNP is ________; from t1 to t2, t3 to t4, and beyond t5 real GNP is ________.

Question

Figure 8-4 
-Employing Figure above in the time periods t0 to t1, and t4 to t5 real GNP is ________; from t1 to t2, t3 to t4, and beyond t5 real GNP is ________.

Quizplus · Accepted Answer

From t0 to t1, real GNP is decreasing as shown by the downward slope of the graph. From t1 to t2, real GNP is increasing as shown by the upward slope. From t3 to t4, real GNP is decreasing as shown by the downward slope. From t4 to t5, real GNP is decreasing again as shown by the downward slope. Beyond t5, real GNP is increasing as shown by the upward slope. Therefore, the best choice is D, as it accurately reflects the changes in real GNP over the given time periods.

Figure 8-4 -Employing Figure Above in the Time Periods T0 to T1