In the twentieth century, fluctuations in real GDP were
A) less severe during the last 50 years than was true during the first half of the century.
B) virtually eliminated as the result of the countercyclical application of fiscal policy.
C) more severe during the last 50 years than was true during the first half of the century.
D) primarily the result of a fiscal policy that has persistently balanced the federal budget.

Question

Quizplus · Accepted Answer

Fluctuations in real GDP were less severe in the latter half of the twentieth century due to improved economic policies and institutions, as well as better understanding and management of economic cycles.

In the Twentieth Century, Fluctuations in Real GDP Were