What does the structural stagnation hypothesis say about how soon the economy will return to its trend growth?
A)The economy has already returned to its previous trend growth rate.
B)The economy will return to its previous trend growth rate soon.
C)It will be a long time before the economy returns to its previous trend growth rate.
D)The economy will never return to its previous trend growth rate.

Question

Quizplus · Accepted Answer

The structural stagnation hypothesis suggests that due to deep-rooted structural problems in the economy, it will take a long time for the economy to return to its previous trend growth rate.

What Does the Structural Stagnation Hypothesis Say About How Soon