Real GDP decreases during A) the movement from trough to peak. ...

[hbsimmons88]

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.

[Edwyer]

Answer to Question 1

C

Answer to Question 2

A

[hbsimmons88]

TYSM

[coreycathey]

Gracias!