Question

The information above describes the real GDP per capita for a country for the period from 1985 through to 2001. If a new business cycle began in 1985, how long was this cycle? In which year did the peak occur? The trough occurred in which year? How long was the expansion? How long was the recession?

Answer 1

Answer:

The question is incomplete, here is the complete question.

Year                               Real GDP per Capita

1985                                          6,000

1986                                          6,300

1987                                           6,700

1988                                           7,200

1989                                           7,850

1990                                           8,250

1991                                            8,450

1992                                           8,550

1993                                           8,575

1994                                           8,510

1995                                           8,370

1996                                           8,100

1997                                            7,950

1998                                           7,925

1999                                           7,960

2000                                          8,035

2001                                            8,155

The information above describes the real GDP per capita for a country for the period from 1985 through to 2001. If a new business cycle began in 1985, how long was this cycle? In which year did the peak occur? The trough occurred in which year? How long was the expansion? How long was the recession?

Step-by-step explanation:

a.If a new business cycle began in 1985, how long was this cycle?

The business cycle describes the rise and fall in production output of goods and services in an economy. In the data given above, a business cycle is complete in the year 1998. If the cycle started in 1985 then it was 14 years long.

b. In which year did the peak occur? The trough occurred in which year?

In the data given above, the peak occured in year 1993 (GDP per capita of 8,575) and trough occurred in the year 1998 (GDP per capita of 7,925).

c. How long was the expansion? How long was the recession?

Expansion was 9 years long (1985-1993) and recession was of 5 years (1994-1998).