Under the standard macro policy, the long-run trend growth rate is assumed to be:
A)1 to 2 percent.
B)5 to 6 percent.
C)3 to 3.5 percent.
D)0 to 1 percent.

Question

Quizplus · Accepted Answer

The long-run trend growth rate under standard macroeconomic policy is typically assumed to be in the range of 3 to 3.5 percent. This reflects a consensus among economists about the sustainable growth rate of developed economies without causing inflationary pressures.

Under the Standard Macro Policy, the Long-Run Trend Growth Rate