Spending by federal, state, and local governments has grown from _____ of GDP in the 1930s to more than _____ today.
A) 5%; 50%
B) 10%; 30%
C) 30%; 70%
D) 5%; 10%

Question

Quizplus · Accepted Answer

Spending by federal, state, and local governments has indeed grown significantly since the 1930s. In the 1930s, such spending was a smaller portion of the GDP, reflecting a more limited government role in the economy. Over the decades, this has increased to more than 30% of GDP today, reflecting expanded government responsibilities and services, including social security, healthcare, education, and infrastructure. The correct answer reflects this growth from a smaller base to a substantial portion of the economy, but not to the extent of exceeding half of the GDP.

Spending by Federal, State, and Local Governments Has Grown from _____