Using the accompanying graph demonstrate an economy whose output declines by 4 percent in year 2 and
Question:
a. By what dollar amount did output decline during the recession?
b. By what percent does the economy need to expand to return to trend by year 3.
c. How does your answer to b compare to the initial percentage decline?
d. What accounts for your answer to c?
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a Economic output declined by 080 b The economy needs grow by 105 percent ...View the full answer
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