Refer to the graph. The economy begins at a level of output of $20 billion and experiences a one year recession in which output declines by 4 percent. By what rate must the economy expand to return to potential output by year 2?
A)About 4 percent
B)About 6 percent
C)About 8 percent
D)About 10 percent

Question

Refer to the graph. The economy begins at a level of output of $20 billion and experiences a one year recession in which output declines by 4 percent. By what rate must the economy expand to return to potential output by year 2? 
A)About 4 percent 
B)About 6 percent 
C)About 8 percent 
D)About 10 percent

Quizplus · Accepted Answer

The Answer of Refer to the graph. The economy begins at a level of output of $20 billion and experiences a one year recession in which output declines by 4 percent. By what rate must the economy expand to return to potential output by year 2? 
A)About 4 percent 
B)About 6 percent 
C)About 8 percent 
D)About 10 percent

Refer to the Graph