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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Definitions:

Quantitative Data

Quantitative data refers to information that can be measured and written down with numbers, expressing quantities, lengths, or sizes.

Census

A survey to collect data on the entire population.

Population

The full set of subjects or entities analyzed in a statistical investigation.

Experimental Studies

Research designs that involve the manipulation of one or more variables to determine their effect on one or more outcome variables.