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In Beyonceland, Real GDP Fell Continuously from $200 Billion in 2015

Question 39

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In Beyonceland, real GDP fell continuously from $200 billion in 2015 to $160 billion in 2016. Potential GDP remained constant at $180 billion. Between 2015 and 2016, Beyonceland


A) went from a peak to a trough.
B) went from expansion to contraction.
C) went from a deflationary gap to an inflationary gap.
D) went from a positive output gap to a negative output gap.
E) had a growth rate of -25 percent.

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