2 Key facts about economic fluctuations The following graph

2. Key facts about economic fluctuations The following graph approximates business cycles in the United States from January 1973 to January 1983. The vertical blue bars coincide with periods of six or more months of declining Real Gross Domestic Product (real GDP). REAL OOP ?Duons el dollars 5500 5200 4900 4600 4300 4000 1973 1975 1977 1979 1981 1983 YEAR Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1980, is known as True or False: The small ups and downs in real GDP appear to follow a consistent, predictable pattern during this period O True O False Which of the following probably occurred as the U.S. economy experienced declining real GDP in 19747 Check all that apply. Retail sales increased Industrial production declined. Home sales increased. Investment spending declined

Solution

The blue shaded area in the business cycle where the output is declining is called a \"depression\". it is the time when the output is lower than the before or declining.

\"False\"

These small ups and downs are not predictable but its unpredictability makes it a matter of concern if we could predict it would not be a concern for the economy.

In the year \"1978\" the unemployment rate rose. in the other two given years, the unemployment rate declined.