Which of the following happened during World War II?
A)Government purchases of goods and services increased.
B)The real GDP per person decreased by 60 percent.
C)The unemployment rate increased to 15 percent.
D)The long-run aggregate supply shifted to the right.

Question

Quizplus · Accepted Answer

During World War II, government purchases of goods and services increased significantly. This was due to the need to finance and support the war effort, which led to a temporary increase in government spending and employment. B is incorrect because real GDP per person actually increased during the war, though this growth was driven by military spending rather than private consumption and investment. C is also incorrect as the unemployment rate fell due to the increased demand for workers in the government and military sectors. D is incorrect as the war did not shift the long-run aggregate supply curve, which is determined by factors such as technology, resources, and institutions.

Which of the Following Happened During World War II