The central difference between the standard theory and the structural stagnation hypothesis, when it comes to growth, is:
A)the level of inflation.
B)the trend growth rate.
C)the federal funds rate.
D)the natural rate of unemployment.

Question

Quizplus · Accepted Answer

The structural stagnation hypothesis differs from the standard theory primarily in its view on the trend growth rate, suggesting a long-term slowdown in economic growth due to structural factors, unlike the standard theory which might attribute fluctuations to cyclical or temporary factors.

The Central Difference Between the Standard Theory and the Structural