Question

The following data give the dates of successive turning points in U.S. economic activity and the corresponding levels of real GDP at the time.

(A) July 1953 1992.2
(B) May 1954 1941.0
(C) Apr. 1957 2182.7
(D) Apr. 1958 2117.4
(E) Apr. 1960 2391.0

A. (A), (C), and (E)
B. (B) and (D)
C. (C), (D), and (E)
D. (A), (B), and (C)

Answer 1

Peaks in U.S. economic activity for the given data are represented by (A) July 1953, (C) April 1957, and (E) April 1960, which are points with higher GDP values, identifying Option A as the correct answer.

Step-by-step explanation:

In assessing which dates represent the turning points in U.S. economic activity and correspond with the given real GDP levels, we look at economic peaks (highest points of economic activity before a downturn) and troughs (lowest points before an upturn). Using the given data, we can deduce that (A) July 1953 with a higher GDP of 1992.2 likely represents a peak, while (B) May 1954 with a lower GDP of 1941.0 represents a trough. Continuing this pattern, points (C) April 1957 and (E) April 1960 would be peaks with higher GDPs of 2182.7 and 2391.0, respectively, and (D) April 1958 with a GDP of 2117.4 would be a trough. Thus, the dates which correspond to the peaks of U.S. economic activity are (A), (C), and (E), making the answer to the question Option A.