ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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steadily grown over time.
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steadily declined over time.
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behaved in ways that cannot be explained by modern macroeconomists.
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experienced drastic fluctuations, but it is back to its old levels now.
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Detailed explanation-1: -GDP Annual Growth Rate in the United States averaged 3.13 percent from 1948 until 2022, reaching an all time high of 13.40 percent in the fourth quarter of 1950 and a record low of-8.40 percent in the second quarter of 2020.
Detailed explanation-2: -Long-run growth is described as an economy’s ability to create more products and services over time. In addition to pricing and supply and demand, a country’s GDP is intimately linked to population growth.
Detailed explanation-3: -Our definition of steady-state growth is simply the growth rate to which an economy would converge to in the absence of any new shocks. An economy is modelled by means of a parsimonious and agnostic TVP-VAR model.
Detailed explanation-4: -Long-run economic growth is an increase in the productive capacity of the economy due to an increase in the long-run aggregate supply. Trend growth rate or potential growth rate is a rate at which output can grow sustainably over a period of time. LRAS stands for long-run aggregate supply.