If real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, is known as: a. an expansion
b. a recession
c. a business cycle

Small ups and downs in real GDP follow a consistent, predictable pattern.

a. True
b. False

b. a recession

False

Explanation:

Gross domestic product is the sum of all final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export

Real GDP is GDP calculated excluding the effects of inflation.

A recession is defined as a period of negative economic growth. An economy is in recession when the GDP over two consecutive quarters is negative.

Trends in real GDP aren't predictable because factors affecting real GDP aren't predictable.

For example, an unforseen event can suddenly affect the economy and greatly depress either consumption or investment or government spending or even net export.

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