Question

The figure shows the fluctuations in aggregate output since 1900. 17.000 TIL 11.000 Recession 2008-2009 Recession 1980-1982 Recession Recession 2001 1974-1975 Recession Vietnam 1990-1991 Firse oil shock ou shock Korean World War War Il Aggregate output (real GDP) in billions of 200 Roaring Twenties World War! Tie Cat mm 1920 1900 1910 LLLLLLLLL 1950 1960 Years LLLLLLLLLLLLLLLLLLL 1970 1980 1990 2000 2010 2017 MyLab Economics Real-time data According to the figure, which of the following is true regarding business cycles in the United States over the last century? O A. The long-term trend for economic growth over time in the United States has been flat at roughly 0 percent growth. OB. Business cycles were more extreme before World War II than they were after it. OC. The recovery from the 2008-2009 recession was unusually quick. OD. Recessions since 1970 have been more extreme than those before 1970.

Answer 1

Option B is right

We see from the graph that the fluctuations in outputs were greater before the World War II than after it.

A is incorrect since there has been overall growth in the economy.

C is incorrect since the recovery was steady and not too quick.

D is incorrect since recessions were more extreme before 1970 due to the troughs we see.