Instructions: Select the Output $($real GDP$)$ series and plot it for the entire data range. Switch the Recession Year$($s$)$ button to ON$.$

a$)$ Look at the graph and pick the answer that best describes the data series.

multiple choice $1$

Real GDP generally rises over time, except during recessions $($when it may fall$).$

Real GDP$,$ because it is a real variable, tends to be constant.

Real GDP shows no distinct trend.

Real GDP generally rises over time because of the higher price level in more recent years.

Instructions: Change the Start Date in the Time Period box to the year $2000$ and press 'Plot Data.$\text{'}$ Check that the Recession Year$($s$)$ button is changed to ON$.$

b$)$ Choose the options that best complete the following sentence:

The recession that started at the end of $2007$ was

$($Click to select$)$

severe than the $2001$ recession, as evidenced by the

$($Click to select$)$

negative impact on the level of real GDP and the

$($Click to select$)$

length of the recession.