In the United States, between 1961 and 2011, there has been i) a consistent , non-changing growth rate of potential GDP per person.
Ii) an increase in the standard of living based on real GDP per person.
Iii) fluctuations in real GDP per person around potential GDP per person.
A)ii only
B)i, ii and iii
C)i and ii only
D)ii and iii
E)i only

Question

Quizplus · Accepted Answer

Option i states that there has been a consistent, non-changing growth rate of potential GDP per person. This is not correct as the potential GDP per person has increased over time due to factors such as technological advancements and investments in physical and human capital. Hence, option i is incorrect.
Option ii states that there has been an increase in the standard of living based on real GDP per person. This is supported by data as real GDP per person has increased over time, indicating that people are able to consume more goods and services, which improves their standard of living. Hence, option ii is correct.
Option iii states that there have been fluctuations in real GDP per person around potential GDP per person. This is also supported by data as real GDP per person has fluctuated due to business cycles that cause short-term deviations from potential GDP per person. Hence, option iii is correct.
Therefore, the correct choice is D, ii and iii only.

In the United States, Between 1961 and 2011, There Has