The average growth rate of real GDP over the 60 years preceding the Great Recess
ID: 1136996 • Letter: T
Question
The average growth rate of real GDP over the 60 years preceding the Great Recession (2008-2009) was 3.5%. Economists forecast the average growth rate going forward to be closer to 2%. All of the following explain the future slowdown in U.S. economic growth except:
The average growth rate of real GDP over the 60 years preceding the Great Recession (2008-2009) was 3.5%. Economists forecast the average growth rate going forward to be closer to 2%. All of the following explain the future slowdown in U.S. economic growth except:
A) inadequately preparing a large fraction of young people for the jobs of the future B) growth in productivity and the labor force C) wealthier families choosing to have only one person engaged in the paid labor market D) baby boomers are heading off for retirementExplanation / Answer
Option B is correct
if there is a growth in the productivity and the labour force then it is not going to slow down the growth but it will provide a stimulus to the growth of the economy. Productivity increase will shift the production possibility Frontier outwards and will increase the long run aggregate supply .
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