Question

If in round numbers, real GDP was $1,100 billion at the start of the Great Depression and $10 trillion at the start of the Great Recession, then real GDP was __________ in year 7 of the Great Depression and __________ in year 4 of the Great Recession.



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Group of answer choices

$100 billion; $0 trillion

$100 billion; $10 trillion

$1,100 billion; $10 trillion

$1,100 billion; $0 trillion

Answer 1

Real GDP will always decline after 7 years of Great Depression . The Great Depression was the worst economic downturn in the history of the industrialized world, lasting from 1929 to 1939. So it lasted for 10 years .

So in year 7 it will definitely be lower than $1,100 billion . So answer option can be : $100 billion .

The Great Recession began in 2007 and in mid 2009 economy began to grow again . So in 4 years GDP was growing back to normal position as it was before Great Recession . It will never be $0 trillion . So answer choice : $10 trillion

Answer : $100 billion; $10 trillion .