Why would macroeconomists rate economic performance in Speed-Nation superior to that in Stag-Nation? Speed-Nation has
A)milder business cycles.
B)more volatile business cycles.
C)faster economic growth.
D)larger real GDP gaps.
E)smaller real GDP gaps.

Question

Quizplus · Accepted Answer

Macroeconomists would rate economic performance in Speed-Nation superior to that in Stag-Nation because it has faster economic growth. This means that the country has a higher rate of increase in its real GDP, indicating increased economic activity and expansion. A faster-growing economy can generate more employment opportunities, increase average household incomes, and improve the overall standard of living.

Why Would Macroeconomists Rate Economic Performance in Speed-Nation Superior to That