Which of the following macroeconomic problems leads to lower economic growth?

Question

Quizplus · Accepted Answer

Inflation and large swings in real GDP can lead to lower economic growth. Inflation can erode purchasing power and create uncertainty, while large swings in real GDP (economic instability) can deter investment and planning, both of which are detrimental to sustained economic growth. Low unemployment is generally not considered a problem leading to lower economic growth; in fact, it is often associated with a healthy economy.

Which of the Following Macroeconomic Problems Leads to Lower Economic