(Enter response here.) 6. A number of macroeconomic variables decline during recessions. One of these variables is the GDP. a What other variables, besides real GDP tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected. (Enter response here.) b. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?

(Enter response here.) 6. A number of macroeconomic variables decline during recessions. One of these variables is the GDP. a What other variables, besides real GDP tend to decline during recessions? Given the definition of real GDP and its components, explain the declines in these economic variables which are to be expected. (Enter response here.) b. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend in spite of the cycles?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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