Business: The Economy: Modest Hopes, Modest Gains

PRESIDENT Nixon's economists have long promised that the reward for the business slowdown that they engineered in 1969 and early 1970 would be a combination of slower price rises and renewed economic upturn in the second half of this year. They qualified that prediction by adding that any recovery would be modest. The recovery is taking place, and it is indeed modest.

Last week the Commerce Department reported that the gross national product rose at an annual rate of 6% in the third quarter—but added that most of the gain consisted of price increases. Without them, the real rise was 1.4%, which...

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