-Refer to the graphs in the exhibit.From the beginning of period 1 to the end of period 2, what happened to real GDP?
A) It increased from $6,000 to $10,000 and stayed there.
B) It decreased from $10,000 to $6,000 and stayed there.
C) It decreased from $10,000 to $,6,000 in period 1, and it increased from $6,000 to $10,000 in period 2.
D) It increased from $6,000 to $10,000 in period 1, and it decreased from $10,000 to $6,000 in period 2.

Question

-Refer to the graphs in the exhibit.From the beginning of period 1 to the end of period 2, what happened to real GDP?  
A) It increased from $6,000 to $10,000 and stayed there. 
B) It decreased from $10,000 to $6,000 and stayed there. 
C) It decreased from $10,000 to $,6,000 in period 1, and it increased from $6,000 to $10,000 in period 2. 
D) It increased from $6,000 to $10,000 in period 1, and it decreased from $10,000 to $6,000 in period 2.

Quizplus · Accepted Answer

From the beginning of period 1 to the end of period 2, real GDP decreased from $10,000 to $6,000 in period 1 and then increased from $6,000 to $10,000 in period 2. Therefore, option C is the correct answer.

-Refer to the Graphs in the Exhibit