Structural stagnation cannot be treated as a normal business cycle because it:
A)only happens once every 30 years.
B)only occurs as result of hyperinflation.
C)is far less responsive to typical demand-side policies.
D)is far less responsive to supply-side policies.

Question

Quizplus · Accepted Answer

Structural stagnation is characterized by deep-rooted issues in the economy's structure, making it less responsive to traditional demand-side policies like fiscal and monetary stimulus, which are typically used to combat cyclical downturns.

Structural Stagnation Cannot Be Treated as a Normal Business Cycle