Question

How would you characterize the size of the U.S. economy, as measured by GDP. after the onset of COVID in February and March 2020?

a. After shrinking in the first and second quarters of 2020, U.S. GDP rebounded quickly.
b. After shrinking in the first and second quarters of 2020, U.S. GDP gradually continued to fall.
c. After shrinking in the first and second quarters of 2020 , U.S. GDP never rebounded.
d. After shrinking in the first and second quarters of 2020, U.S. GDP began falling more rapidly.
e. After shrinking in the first and second quarters of 2020, U.S. GDP rebounded slowly.

Answer 1

The U.S. GDP experienced a significant decline of 9% during the first half of 2020 due to COVID-19 but quickly rebounded, surpassing pre-pandemic levels by the first quarter of 2021. Therefore correct option is A

Step-by-step explanation:

The size of the U.S. economy, as measured by GDP after the onset of COVID in February and March 2020, can be characterized by an initial shrinkage followed by a prompt recovery. Specifically, after a sharp decline in real GDP of 9% in the first and second quarters of 2020, the U.S. GDP rebounded quickly.

The National Bureau of Economic Research (NBER) reported that the recession induced by COVID-19 was particularly short, lasting just two months, and by the first quarter of 2021, real GDP had already slightly surpassed its pre-pandemic level. This illustrates that, while the initial impact was severe, the U.S. economy demonstrated resilience in its recovery, aided in part by substantial fiscal support through stimulus checks, expanded unemployment insurance, and aid to businesses. Though real GDP recovered, the economy's return to its full potential GDP remains an ongoing process.