He Figure Given Below Represents the Business Cycle of an Economy

question 79

Multiple Choice

he figure given below represents the business cycle of an economy.
Figure 7.1

-Refer to Figure 7.1. The overall upward trend in real GDP reflected by this figure implies that:

• A) the real GDP gap is widening over time.
• B) cyclical unemployment is growing at positive rates.
• C) consumer purchasing power is rising over time.
• D) on average, labor productivity is declining.
• E) expansionary phases outweigh contractionary phases in the economy over time.

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