After the Great Depression, an explanation for why output growth would stop is called:
A)the structural stagnation hypothesis.
B)secular stagnation theory.
C)the frictional stagnation hypothesis.
D)the slow growth model.

Question

Quizplus · Accepted Answer

Secular stagnation theory suggests that a persistent condition of negligible or no economic growth in a market-based economy can occur due to various structural factors, such as a chronic deficiency of demand, leading to a situation where the natural interest rate is very low, making it difficult for monetary policy to stimulate investment and growth. This theory gained prominence after the Great Depression and has been revisited in discussions about economic conditions following the 2008 financial crisis.

After the Great Depression, an Explanation for Why Output Growth