Answer: • Recession
• False
• The unemployment rate increased.
Consumer spending declined.
Explanation:
1. Notice that real GDP trends upward over time but experiences ups and downs in the short run. A period of declining real GDP, such as the blue-shaded period in 1957, is known as (Recession)
Recession is the significant decline in the economic activity which lasts for more than a few months, which results in a fall in GDP, employment, real income, and industrial production.
2. Small ups and downs in real GDP follow a consistent, predictable pattern. - False
It should be noted that small ups and downs in real GDP doesn't follow a consistent, predictable pattern
3.Which of the following probably occurred as the U.S. economy experienced declining real GDP in 1957
The unemployment rate increased.
Consumer spending declined.
A fall in real GDP will lead to a fall in the demand of goods and services as consumer spending reduces. Also, the unemployment rate increases as some workers may be laid off due to reduction in demand.
