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The last phase of contraction in the United States occurred in the early 1980s. Take the real GDP and inflation rate data presented in Table 20-2.
A. Calculate the inflation rate and the real GDP growth rate from 1981 to 1985. Can you determine in which year there was a deep phase of contraction or recession in the economy?
B. In an OA-DA diagram as in figure 20-6 draw a set of OA and DA curves that plot the price and production balance show in the table. How can you explain the recession you’ve identified?
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The last phase of contraction in the United States occurred in the early 1980s. Take the real GDP an...
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