What is a "Which Of The Following Is Not A Potential Cause Of Stagnant Economic Growth"? The Most Authoritative Explanation.

What is a "Which Of The Following Is Not A Potential Cause Of Stagnant Economic Growth"? The Most Authoritative Explanation.

What causes a stagnant economy?

A stagnant economy can result from longer-term, structural conditions in a society. Mature economies are characterized by slower population growth, stable economic institutions, and slower growth rates. Classical economists refer to this type of stagnation as a stationary state, and Keynesian economists consider it common in an advanced economy.

How does economic growth affect real GDP?

Economic growth means an increase in real GDP. Economic growth means there is an increase in national output and national income. In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy, then an increase in AD will cause a higher level of real GDP. 1. Factors which affect AD

How does aggregate demand affect economic growth?

In the short term, economic growth is caused by an increase in aggregate demand (AD). If there is spare capacity in the economy, then an increase in AD will cause a higher level of real GDP. 1. Factors which affect AD Lower interest rates – Lower interest rates reduce the cost of borrowing and so encourages consumer spending and firms to invest.

What is stagnation in economics?

Stagnation is a period of little or no growth in an economy characterized by a growth of less than 2-3% annually as measured by gross domestic product (GDP). Stagnation can be caused by business cycles, shocks to the economy, or the economic structure of a region.

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