Plot these data points, and identify the four phases of the business cycle. Give a theory that may explain the cause of the observed business cycle. What are some of the consequences of a prolonged decline in real GDP? Is the decline in real GDP from $1,000 billion to $500 billion a recession?
2007-02-27 07:10:46 · 2 answers · asked by styles4u 4 in Social Science ➔ Economics
A prolonged decline in real GDP means that the economy is in trouble because it is not growing. As far as whether the decline in real GDP form $1,000 to $500 billion is a recession is a bit trickier. Recession is defined as 2 consecutive quarters of negative growth in GDP. So if the $500 is 2 quarters after the other, then it is a recession.
2007-02-27 07:14:57 · answer #1 · answered by theeconomicsguy 5 · 0⤊ 0⤋
Hey kid, just do your own homework.
2007-02-27 07:14:47 · answer #2 · answered by Jacob W 7 · 0⤊ 2⤋