Refer to the following figure when answering the following questions.
Figure 9.2: U.S. Output Fluctuations 1960-2015
-Consider Figure 9.2. In 1989, the U.S. economy experienced an economic ________, and current output was about ________ percent above potential output.
A) boom; 1
B) recession; 1
C) boom; 2
D) This cannot be determined from the information given.
E) None of these answers is correct.

Question

Refer to the following figure when answering the following questions.
Figure 9.2: U.S. Output Fluctuations 1960-2015  
-Consider Figure 9.2. In 1989, the U.S. economy experienced an economic ________, and current output was about ________ percent above potential output.
A) boom; 1 
B) recession; 1 
C) boom; 2 
D) This cannot be determined from the information given. 
E) None of these answers is correct.

Quizplus · Accepted Answer

In 1989, the U.S. economy was in a period of economic expansion or boom, and the output was approximately 1 percent above the potential output, indicating a state of economic growth beyond its long-term sustainable level.

Refer to the Following Figure When Answering the Following Questions