Question

Since 1970, united states exports and imports have:

a. grown absolutely, but remained a constant proportion of gdp.
b. grown absolutely, but declined as a proportion of gdp.
c. grown both absolutely and as a percentage of gdp.
d. declined both absolutely and as a percentage of gdp.

Answer 1

option c.Since 1970, United States exports and imports have grown both in absolute terms and as a percentage of GDP, reflecting increased globalization and international trade involvement.

Step-by-step explanation:

Since 1970, United States exports and imports have grown both absolutely and as a percentage of GDP. In 1960, exports represented only 3.6% of real GDP, but by 2007, they accounted for 12.4% of real GDP, showing significant growth over time. This pattern continued even through economic challenges such as the Great Recession between 2008 and 2009. While the U.S. trade deficit has often been significant, with imports exceeding exports, both imports and exports have risen substantially, indicating a larger role of international trade in the U.S. economy.

Moreover, the share of U.S. exports in relation to the total economy has increased, although it remains below the global average. This is partly because the U.S. can sustain more of its division of labor domestically compared to smaller economies that need to engage more in international trade. Nonetheless, the growth in the export/GDP ratio suggests greater involvement in the global market.