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Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.

Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.

Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter23: Aggregate Demand And Aggregate Supply
Section: Chapter Questions
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14. (02.07 MC) Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.
Transcribed Image Text:14. (02.07 MC) Use the graph to answer the question that follows. Real GDP Potential Real GDP Actual Real GDP Time At the points T₁ and T3 of this economy's business cycle, which of the following occurred? ( Real GDP was increasing, and unemployment was falling. Nominal GDP was decreasing, and employment was increasing. The price level was falling, and unemployment was falling. Nominal GDP was falling, but real GDP was increasing. Real GDP was falling, and unemployment was decreasing.
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