Over time,U.S.real GDP has increased:
A) By small,constant increments.
B) At a constant geometric rate.
C) At an average rate of 3 percent per year.
D) At an average rate of 7 percent per year.

Question

Quizplus · Accepted Answer

U.S. real GDP has historically grown at an average annual rate of around 3 percent. Although there have been fluctuations and variations from year to year, the general trend has been a gradual increase over time. Option A suggests that the growth has been small and constant, which is not necessarily accurate. Option B implies that the growth has been at a steady exponential rate, which is also unlikely considering the various economic cycles and fluctuations. Option D suggests a higher rate of growth, which is possible in certain periods, but not as an average over time.

Over Time,U.S.real GDP Has Increased