Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1948, is known as_______(a recession/a business cycle/an expansion) .
The answer to this question is the choice 'a recession'. The period of decline in real GDP and other factors in the economy such as the blue-shaded period in 1948 is called a recession.
