During a business cycle recession, it is very likely that real GDP will

A) be greater than potential GDP.
B) be less than potential GDP.
C) equal nominal GDP and equal potential GDP.
D) exceed nominal GDP.
E) equal nominal GDP but not equal potential GDP.

B

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A) Michael Spence. B) John Nash. C) Porter Smith. D) Michael Porter.

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Using "chain-weighted" prices to calculate real GDP remedies the distortions causes by changes in relative prices over time

Indicate whether the statement is true or false

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