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.

Plateau

Expansion

Contraction

Trough

potential output exceeds real output

real output exceeds potential output

real output is equal to potential output

nominal output exceeds potential output

potential output exceeds real output

real output exceeds potential output

real output is equal to potential output

nominal output exceeds potential output