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
Economics Principles Problems And Policies
ISBN: 9780073511443
19th Edition
Authors: Campbell Mcconnell ,Stanley Brue ,Sean Flynn
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