Plateau

Expansion

Contraction

Trough

An increase in imports does not affect a nation's GDP.

An increase in imports raises a nation's GDP.

An increase in imports decreases a nation's GDP.

Plateau

Expansion

Contraction

Trough

An increase in imports does not affect a nation's GDP.

An increase in imports raises a nation's GDP.

An increase in imports decreases a nation's GDP.

An increase in imports does not affect a nation's GDP.

An increase in imports raises a nation's GDP.

An increase in imports decreases a nation's GDP.

Plateau

Expansion

Contraction

Trough

Increasing aggregate demand through fiscal policy

Buying and selling bonds via open market operations

Adjusting the discount rate

Adjusting the reserve requirements for banks

All of these tools are used by the Federal Reserve

Increasing aggregate demand through fiscal policy

Buying and selling bonds via open market operations

Adjusting the discount rate

Adjusting the reserve requirements for banks

All of these tools are used by the Federal Reserve

Increasing aggregate demand through fiscal policy

Buying and selling bonds via open market operations

Adjusting the discount rate

Adjusting the reserve requirements for banks

All of these tools are used by the Federal Reserve

potential output exceeds real output

real output exceeds potential output

real output is equal to potential output

nominal output exceeds potential output