Distinguish between the concept of a secular growth trend of the economy,and an increase in output experienced in any given year.

Question

Quizplus · Accepted Answer

The Answer is Economic output varies considerably from year to year,as the economy experiences expansions and recessions over the business cycle.The concept of secular growth trend represents the long-term rise in the economy,after "smoothing out" the year to year fluctuations.Secular growth trend reflects changes in underlying growth potential,particularly the growth of population and productivity.

Distinguish Between the Concept of a Secular Growth Trend of the Economy,and