Question

which of the following is not a reason why the u.s. economy has been more stable since 1950? group of answer choices services have become a larger fraction of gdp and goods have become a smaller fraction of gdp. the government has actively pursued policy to combat recessions and prolong expansions. goods have become a larger fraction of gdp and services have become a smaller fraction of gdp. unemployment insurance and other government programs curtail the decline in spending that occurs during a recession.

Answer 1

The incorrect statement is that the U.S. economy's stability since 1950 is due to goods becoming a larger fraction of GDP and services becoming smaller. In reality, services have increased as a fraction of GDP, and government policies, along with automatic stabilizers, have enhanced economic stability. Therefore correct option is C

Step-by-step explanation:

The reason the U.S. economy has not been more stable since 1950 is that goods have become a larger fraction of GDP and services have become a smaller fraction of GDP, which is not true. In fact, it's the opposite; services have grown to represent the largest part of GDP over time. The stability of the U.S. economy has increased due to several factors. Firstly, services have become a larger fraction of GDP, shifting away from manufacturing and towards a service-oriented economy. Secondly, the increase in government spending and automatic stabilizers, such as unemployment insurance, help mitigate the effects of economic downturns. Lastly, government policies that actively combat recessions and promote expansions contribute to economic stability.