Question

explain directions: read the information below on gross domestic product and fill in the graph below. gross domestic product, known as \gdp,\ measures the market value of all final goods and services produced in a country in a calendar year. gdp breakdown market value - u.s. gdp is measured in u.s. dollars at the price the goods were sold at, in \current dollars.\ this means that gdp is not adjusted for inflation. this
ominal\ number is used to determine the output of the economy at a given point in time. final goods and services - gdp measures the production of final goods and services, rather than also including intermediate goods and services, to avoid double - counting. in a country - gdp is focused on domestic production. as such, it counts goods and services produced in the united states. in accounting, exports are counted (because they are produced in the u.s.) but imports are not counted as part of gdp. in a calendar year - gdp is measured on a yearly basis but updates are released quarterly. the business cycle graph below is used by the government to determine if the economy is contracting or expanding. as the graph line goes up, then the economy is expanding, and as the line goes down then the economy is contracting. as the economy expands and contracts, the line will form hills. the bottom of the hill is the trough, and top of hill is the peak. these hills are known as cycles. 1. place the following terms into spaces a - d below: contraction, peak, trough, and expansion.

Explanation:

The business cycle has phases. Expansion is when the economy is growing (GDP rising), peak is the highest - point of the cycle, contraction is when the economy is shrinking (GDP falling), and trough is the lowest - point. Based on the graph's shape and the definitions of these terms: A is expansion as the GDP is rising towards the peak; B is peak as it is the highest point; C is trough as it is the lowest point; D is contraction as GDP is falling from the peak.

Answer:

A. expansion
B. peak
C. trough
D. contraction