Refer to the figure below: Real GDP (1996 dollars, billions) B A E a) which point or points indicate peaks of the business cycle? b) which point or points indicate troughs of the business cycle? c) which interval(s) represents a business cycle recession?

Refer to the figure below: Real GDP (1996 dollars, billions) B A E a) which point or points indicate peaks of the business cycle? b) which point or points indicate troughs of the business cycle? c) which interval(s) represents a business cycle recession?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter23: Aggregate Demand And Aggregate Supply

Section: Chapter Questions

Problem 1QR

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QUESTION 5
Refer to the figure below:
Real GDP
(1996 dollars,
billions)
B
A
E
a) which point or points indicate peaks of the business cycle?
b) which point or points indicate troughs of the business cycle?
c) which interval(s) represents a business cycle recession?

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Step 1: Define business cycle.

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Step 2: a) Determine the points that indicate peaks.

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Step 3: b) Determine the points that indicate tough.

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Step 4: c) Determine the intervals that indicate business recession.

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