In 1943-1945
A)there was substantial unemployment in the U.S.
B)there was substantial excess plant and equipment in the U.S.
C)the U.S.had not yet completed its recovery from the depression.
D)we were temporarily operating at a point beyond our production possibilities frontier.
The unemployment rate was at less than 2% from 1943-1945.

Question

Quizplus · Accepted Answer

The U.S. was operating at a point beyond its production possibilities frontier due to the demand for goods and services during World War II. There was not substantial unemployment or excess plant and equipment during this time period, and the U.S. had largely recovered from the Great Depression by 1943. The low unemployment rate also supports the idea that the economy was operating at or beyond its potential.