Based on the graph below, which of the following statements are TRUE? Check all the ones that apply. Real GDP (In billion of dollars) 91 92 93 94 95 96 97 Potential GDP Real GDP Figure 1: GDP over time. Select one or more: a. In 1996, the economy was in a recession and the unemployment rate was above 5% (the natural rate). b. In 1994, the economy was experiencing an expansion and unemployment was likely falling c. In 1993, the economy was experiencing a recession and real GDP was above potential GDP. d. In 1992, the economy was at a business peak and the unemployment rate was exactly 5%. e. In 1991, the economy was experiencing a recession and potential GDP was above real GDP.

Based on the graph below, which of the following statements are TRUE? Check all the ones that apply. Real GDP (In billion of dollars) 91 92 93 94 95 96 97 Potential GDP Real GDP Figure 1: GDP over time. Select one or more: a. In 1996, the economy was in a recession and the unemployment rate was above 5% (the natural rate). b. In 1994, the economy was experiencing an expansion and unemployment was likely falling c. In 1993, the economy was experiencing a recession and real GDP was above potential GDP. d. In 1992, the economy was at a business peak and the unemployment rate was exactly 5%. e. In 1991, the economy was experiencing a recession and potential GDP was above real GDP.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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