A time- series graph displaying real GDP from 1950 to 2008 has a positive trend. It is likely that real GDP
A) rose every year from 1950 to 2008.
B) was lower in 1950 than in 2008.
C) was higher in 1950 than in 2008.
D) fell every year from 1950 to 2008.

Question

Quizplus · Accepted Answer

A positive trend means that GDP increased overall during the time period. Therefore, it is likely that GDP was higher in 2008 than it was in 1950, making choice B the best answer. It does not necessarily mean that GDP rose every year or that it was higher in 1950 than in 2008. It definitely does not mean that GDP fell every year.

A Time- Series Graph Displaying Real GDP from 1950 to 2008