Draw a graph with Level of real output on the vertical axis and Time on the horizontal

Question:

Draw a graph with “Level of real output” on the vertical axis and “Time” on the horizontal axis. If the long-run trend line of economic growth for the United States were to appear on your graph as a straight upsloping line, how would you pencil in economic fluctuations in relation to that straight line?

Referring to your graph, briefly explain why economic fluctuations and economic growth are compatible concepts.

Check your drawing against Figure 26.1, page 527.

LO1

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Related Book For  book-img-for-question

Economics Principles Problems And Policies

ISBN: 9780073511443

19th Edition

Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn

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