Immediately following the years 1929–1933, the U.S. economy
Multiple Choice
experienced World War II, which resulted in rapid growth and rapid deflation.
resumed growing at the long-term trend for real GDP of 3 percent every year.
suffered sporadic decreases in the growth rate of GDP.
grew dramatically and steadily over a 20-year period with a record long growth period.
grew dramatically and steadily over a 20-year period with a record long growth period.
The correct answer is: suffered sporadic decreases in the growth rate of GDP.
After the years 1929-1933, the U.S. economy suffered from sporadic decreases in the growth rate of GDP. This period is known as the Great Depression, which was characterized by a severe economic downturn, high unemployment, and low economic activity. It was a challenging time for the U.S. economy, and it took several years for the economy to recover.
To determine the correct answer to this question, we need to understand the economic conditions in the United States during the years 1929-1933.
During this period, the United States experienced the Great Depression, which was a severe worldwide economic downturn. The stock market crash of 1929 marked the beginning of this economic crisis. As a result, the U.S. economy contracted significantly, with sharp declines in industrial production, employment, and overall economic activity.
Now, let's analyze each of the given options:
A) experienced World War II, which resulted in rapid growth and rapid deflation: This option is incorrect because World War II occurred later, from 1939 to 1945, and it did result in rapid economic growth but not during the years immediately following 1929-1933.
B) resumed growing at the long-term trend for real GDP of 3 percent every year: This option is incorrect because, during the Great Depression, the U.S. economy did not resume growing at its long-term trend. Instead, it experienced a severe contraction.
C) suffered sporadic decreases in the growth rate of GDP: This option is closer to being correct. During the Great Depression, the U.S. economy did experience sporadic decreases in the growth rate of GDP. However, it doesn't fully capture the extent of the economic downturn during that period.
D) grew dramatically and steadily over a 20-year period with a record long growth period: This option is incorrect because it suggests that the U.S. economy experienced sustained growth for 20 years following 1929-1933, which is not accurate. The recovery from the Great Depression was slow and gradual, and the subsequent economic expansion came with the onset of World War II.
Therefore, the most accurate answer to the question is:
C) suffered sporadic decreases in the growth rate of GDP.