Which of the following can be concluded about the long-run performance of the U.S.economy?
A)It has been able to create employment opportunities but only at the cost of high inflation.
B)It has failed to generate sufficient aggregate demand in the economy.
C)It has been one of the most productive economies in the world in terms of growth in real GDP.
D)It has focused fiscal policies mostly at improving aggregate supply.
E)It has suffered from huge fiscal deficits that dampened economic growth.

Question

Quizplus · Accepted Answer

The statement "It has been one of the most productive economies in the world in terms of growth in real GDP" best describes the long-run performance of the U.S. economy. This is evident from the fact that the U.S. economy has consistently grown in real terms over the long run, and has been able to maintain its position as one of the largest and most developed economies in the world due to its high productivity. The other choices are incorrect because they do not accurately reflect the long-run performance of the U.S. economy.

Which of the Following Can Be Concluded About the Long-Run