Question 2 Full explain this question 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 billionOA. potential GDP increased.OB. the price level decreased.Year19291930Sources: 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 becauseOC. actual real GDP decreasedOD. the unemployment rate increasedActual Real GDP$1,109.4 billion$1,015.1 billionPrice Level9.49.1

There are various phases in a business cycle that reflect the fluctuations in economic activity. A…

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

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Measuring A Nation's Income

Section: Chapter Questions

Problem 6CQQ

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Question

Question 2

Full explain this question

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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