Question

1. Key facts about economic fluctuations The following graph approximates business cycles in the United States from the first quarter of 1947 to the third quarter of 1951. The vertical blue bar coincides with periods of 6 or more months of declining real gross domestic product (real GDP). 2170 REAL GDP (Billions of dollars) 1770 1947 1948 1950 1 1951 1949 YEAR Source: "Current-dollar and Real GDP," Bureau of Economics Analysis, last modified May 1, 13, accessed May 15, 13, http://www.bea.gov/national/xls/gdplev.xls.

Answer 1

•known as Recession

as GDP is falling, so it's not expansion

Recession & expansion is part of business cycle

• false

ups & downs Downs in economy don't follow a consistent pattern

• mcq

Option B) & D)

as real gdp rises, then purchasing power will.also rise , then consumer spending rises, B is true

So home sales should rise , C is false

As production will rise, so unemployment would fall, D is true

A is false