During the 1940s, ________ increased sharply as a percentage of U.S. GDP because of ________.
A) government expenditure; World War II
B) residential investment; the war on poverty
C) nonresidential investment; the space program
D) durable consumption expenditures; rationing of nondurable goods
E) transfer payments; the New Deal

Question

Quizplus · Accepted Answer

During the 1940s, government expenditure increased sharply as a percentage of U.S. GDP because of World War II. The war effort required massive amounts of government spending on military and defense-related activities, leading to a significant increase in government expenditure as a share of the overall economy.

During the 1940s, ________ Increased Sharply as a Percentage of U.S