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C. (7 or 8 Points) There are predictions that the economy (measured by Real GDP) will decline. See the graph below from the Congressional Budget

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C. (7 or 8 Points) There are predictions that the economy (measured by Real GDP) will decline. See the graph below from the Congressional Budget Office's Budget and Economic Outlook: 2017 to 2027.How will this affect the stock/bond market? Use a supply and demand graph to depict how an expected increase in expected inflation will affect the stock/bond market. [I will pick either the stock or bond market.] Real GDP Percentage Change 6 Actual | Projected 4 2 0 -2 -4 2002 2007 2012 2017 2022 2027

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