Question

If a country is in a recessionary period, which of the following accurately describes the behavior of real GDP over time.(1 point)
Responses

Real GDP fluctuates, but follows a downward sloping trend line.
Real GDP fluctuates, but follows a downward sloping trend line.

Real GDP does not fluctuate, and follows a vertical sloping trend line.
Real GDP does not fluctuate, and follows a vertical sloping trend line.

Real GDP fluctuates, but follows a upward sloping trend line.
Real GDP fluctuates, but follows a upward sloping trend line.

Real GDP does not fluctuate, and follows a horizontal trend line.
Real GDP does not fluctuate, and follows a horizontal trend line.

Answer 1

The most accurate description of the behavior of real GDP during a recessionary period is:

**Real GDP fluctuates, but follows a downward sloping trend line.**

During a recession, real GDP typically declines, and while it may experience fluctuations in the short term (due to various economic factors), the overall trend during a recession is downward until recovery is achieved.