Since 1947,
A)the U.S.price level has fallen while real GDP rose
B)U.S.real GDP has grown at about the same rate as nominal GDP
C)U.S.employment increased while utilization of capital declined
D)the U.S.price level has doubled,despite eight recessions
E)U.S.real GDP has quintupled,despite eight recessions

Question

Quizplus · Accepted Answer

Since 1947, the U.S. real GDP has quintupled, despite experiencing eight recessions. This is due to various factors, such as population growth, technological progress, and government policies that promote economic growth. The other options are incorrect: A is not true, as the price level has generally risen over time; B is not entirely accurate, as nominal GDP has grown at a faster rate than real GDP due to inflation; C is not plausible, as an increase in employment typically leads to increased capital utilization; and D is incorrect, as the price level has not doubled, but has increased by around tenfold.