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Explain the expected declines in these economic variables

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Several macroeconomic variables decline during recessions. One of these variables is the GDP.

1. What other variables, besides real GDP, tend to decline during recessions? Given the definition of real GDP and its components, explain the expected declines in these economic variables.

2. Empirical studies indicate that the long-run trend in real GDP of the USA has an upward trend. How is this possible given business cycles and macroeconomic fluctuations? What factors explain the upward trend despite the cycles?

Reference no: EM133355611

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