Final answer:
Real GDP in a country experiencing healthy growth fluctuates over time but generally follows an upward-sloping trend line, indicating increasing economic output in the long run despite short-term fluctuations.
Step-by-step explanation:
If a country is maintaining a healthy amount of growth, Real GDP fluctuates but follows an upward-sloping trend line. This pattern mirrors the typical behavior of GDP in a growing economy, which experiences changes in growth rates due to the business cycle. A healthy growing economy would not display a downward-sloping trend, which would indicate a long-term decrease in economic output, nor a horizontal trend line, which would imply stagnation. It’s also unrealistic for GDP not to fluctuate, as growth is subject to various short-term macroeconomic factors.
Over the long term, real GDP tends to increase, as seen in historical data such as the U.S. real GDP since 1960. The data shows that while there are short-run fluctuations due to recessions and expansions, the overarching movement is upward. This upward trend aligns with increases in productivity, investment in human and physical capital, technological advancements, and the potential for 'catch-up' growth in developing economies.