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Question
If a country is maintaining a healthy amount of growth, which of the following accurately describes the behavior of real GDP over time?(1 point)
Responses
Real GDP fluctuates but follows a horizontal trend line.
Real GDP fluctuates but follows a horizontal trend line.
Real GDP fluctuates but follows a downward-sloping trend line.
Real GDP fluctuates but follows a downward-sloping trend line.
Real GDP fluctuates but follows an upward-sloping trend line.
Real GDP fluctuates but follows an upward-sloping trend line.
Real GDP does not fluctuate if growth is occurring.
Real GDP does not fluctuate if growth is occurring.
1 answer
If a country is maintaining a healthy amount of growth, the behavior of real GDP over time can be best described as:
Real GDP fluctuates but follows an upward-sloping trend line.
This indicates that while there may be short-term fluctuations (such as economic cycles of boom and recession), the overall long-term trend of the real GDP is increasing, which is characteristic of healthy economic growth.
