In Beyonceland, Real GDP Fell Continuously from $200 Billion in 2015

question 276

Multiple Choice

In Beyonceland, real GDP fell continuously from $200 billion in 2015 to $160 billion in 2016. Potential GDP remained constant at $180 billion. Between 2015 and 2016, Beyonceland

• A) had a growth rate of -20 percent.
• B) had a contraction and a recession.
• C) went from an inflationary gap to a deflationary gap.
• D) went from a positive output gap to a negative output gap.
• E) had all of the above.

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Definitions:

Probability Distribution

A statistical function that describes all the possible values and likelihoods that a random variable can take within a given range.

Mean

The average value of a set of numbers, calculated by dividing the sum of all the numbers by the count of items in the set.

Uniform Probability Distribution

A type of probability distribution where all outcomes are equally likely to occur.

Random Variable

A variable whose possible values are numerical outcomes of a random phenomenon or experiment.