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3. (1 point) The U.S. economy is subject to the forces of the business cycle. However, real GDP has increased over time. Expl
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Answer #1

Answer 3:

The real GDP has increased over time despite business cycles in the US economy because business cycles in the economy lead to short run fluctuations in the aggregate demand or aggregate supply which have an impact on nominal GDP of the economy or nominal variables in the economy rather than real GDP of the economy.Thus, real GDP has increased despite the prevalence of business cycles in the US economy.

Answer 4:

If the prices of goods and services in the economy are rising, then it means that there is inflation in the economy.

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