Question

In the short run what is a pattern of GDP growth?

In the short run what is a pattern of GDP growth?

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Answer #1

IN the short run the GDP follows the business cycle i.e. it increases which we call expanding the economy will experience an inflation at this point and after reaching a point called peak it declines, this is a recession here the unemployment is high and wages will fall with peoples income. Then again after a point or reaching at the bottom it will start increasing. This process is called a business cycle and the GDP will follow that.

So, in the short run the GDp fluctuates.

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