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a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because OA. potential GDP increased OB. the price level decreased OC actual real GDP decreased OD. the unemployment rate increased

a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because OA. potential GDP increased OB. the price level decreased OC actual real GDP decreased OD. the unemployment rate increased

Macroeconomics: Private and Public Choice (MindTap Course List)
Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506756
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter8: Economic Fluctuations, Unemployment, And Inflation
Section: Chapter Questions
Problem 14CQ
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Consider the information in the following table for the first two years of the Great Depression (the values for real GDP and potential GDP are in 2012 dollars) Potential Real GDP $1.056.6 billion $1,148.9 billion OA. potential GDP increased. OB. the price level decreased. Year 1929 1930 Sources: U.S. Bureau of Labor Statistics; and U.S. Bureau of Economic Analysis. a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because OC. actual real GDP decreased OD. the unemployment rate increased Actual Real GDP $1,109.4 billion $1,015.1 billion Price Level 9.4 9.1
Transcribed Image Text:Consider the information in the following table for the first two years of the Great Depression (the values for real GDP and potential GDP are in 2012 dollars) Potential Real GDP $1.056.6 billion $1,148.9 billion OA. potential GDP increased. OB. the price level decreased. Year 1929 1930 Sources: U.S. Bureau of Labor Statistics; and U.S. Bureau of Economic Analysis. a. The information in the table is different from what we would expect to have happened in a recession in the past 50 years because OC. actual real GDP decreased OD. the unemployment rate increased Actual Real GDP $1,109.4 billion $1,015.1 billion Price Level 9.4 9.1
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