1. Key facts about economic fluctuations The following graph approximates business cycles in Canada from January 1981 to January 1991. The vertical blue bars coincide with periods of six or more months of declining real gross domestic product (real GDP). Business Cycles in Canada from January 1981 to January 1991 REAL GOP Billions of dollars 750 700 600 550 True 1983 1905 Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as the business cycle False 1909 True or False: The small ups and downs in real GDP appear to follow a consistent, predictable pattern during this period. 1991 YEAR 1984 1988 1990 Which of the following probably occurred as the Canadian economy experienced declining real GDP in 1981? Check all that apply. Total real income declined. Consumer spending increased. Investment spending declined. Corporate profits increased. In which of the following years is it likely that the unemployment rate rose? Check all that apply.
1. Key facts about economic fluctuations The following graph approximates business cycles in Canada from January 1981 to January 1991. The vertical blue bars coincide with periods of six or more months of declining real gross domestic product (real GDP). Business Cycles in Canada from January 1981 to January 1991 REAL GOP Billions of dollars 750 700 600 550 True 1983 1905 Notice that real GDP trends upward over time but experiences ups and downs in the short run. These short-run fluctuations in real GDP are often referred to as the business cycle False 1909 True or False: The small ups and downs in real GDP appear to follow a consistent, predictable pattern during this period. 1991 YEAR 1984 1988 1990 Which of the following probably occurred as the Canadian economy experienced declining real GDP in 1981? Check all that apply. Total real income declined. Consumer spending increased. Investment spending declined. Corporate profits increased. In which of the following years is it likely that the unemployment rate rose? Check all that apply.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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