Over the Business Cycle

question 162

Multiple Choice

Over the business cycle,

• A)potential GDP fluctuates around its trend.
• B)real GDP fluctuates around its trend.
• C)only potential GDP fluctuates around its trend and real GDP remains equal to its trend.
• D)only real GDP fluctuates around its trend and potential GDP remains equal to its trend.
• E)neither real GDP nor potential GDP fluctuate because they just grow smoothly along their trends.

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