Author Question: Real GDP decreases during A) the movement from trough to peak. B) the movement from below ... (Read 70 times)

hbsimmons88 · **on:** Jun 29, 2018

Real GDP decreases during

A) the movement from trough to peak.
B) the movement from below potential GDP back to potential GDP.
C) the movement from peak to trough.
D) a decrease in unemployment.

Question 2

According to the Ricardo-Barro effect

A) the government budget has no effect on the real interest rate.
B) a government budget deficit crowds out private investment.
C) financing government spending with taxes has a smaller effect on private investment than financing through government borrowing.
D) None of the above answers are correct.