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Suppose an economy enters into a recession. Using appropriate diagrams, explain what changes will take place to real GDP, potential GDP and inflation rates

Suppose an economy enters into a recession. Using appropriate diagrams, explain what changes will take place

Suppose an economy enters into a recession. Using appropriate diagrams, explain what changes will take place to real GDP, potential GDP and inflation rates during the business cycle. (Hint: Draw an appropriate diagram and be sure to define all of the key terms)

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Introduction In the context of economic fluctuations the business cycle captures the upward and downward movements of economic activity Key indicators ... blur-text-image

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