What variables besides real GDP tend to decline during recessions? Given the definition of real GDP, argue that declines in these variables are to be expected
Variables that fall along with real GDP include employment, incomes, investment, sales, and home purchases. GDP may be measured as either the production of, expenditures on, or income generated from final goods and services. It follows that any other variable that could be used to measure production, expenditures, or income will generally move in the same direction as GDP.
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In the determination of economic growth, political freedom
A) is equally as important as economic freedom. B) contributes little to job growth. C) appears to be less important than economic freedom. D) is more important than economic freedom.
Suppose the market for pizza makers is initially in equilibrium, but then the equilibrium wage rate and the equilibrium quantity of labor both increased. What happened in the market for pizza makers?
A) The demand for pizza makers increased. B) The demand for pizza makers decreased. C) The supply for pizza makers increased. D) The supply for pizza makers decreased.