In 1970, 1

Multiple Choice

In 1970, 1.3 barrels of oil produced $1,000 of GDP. In 2004, it took only 0.64 barrels of oil. What implications does this have for economic fluctuations in the United States today?

A) American producers are now producing the same goods and services today by using half the amount of oil that they did in 1970.
B) Oil consumption has stayed steady, but GDP has more than doubled since 1970.
C) Spikes in oil prices will not have as severe an impact on the U.S. economy today as they did in the 1970s.
D) America is still purchasing 1.3 barrels of oil per $1,000 of GDP and saving the remainder for the future.