If our economy is growing at a constant rate of 2 percent per year, then over a period of 20 years we would expect to see which of the following?
A) nice, steady flat-line growth
B) an upward sloping growth path
C) a downward sloping growth path
D) It is impossible to say what kind of growth path we would see.

Question

Quizplus · Accepted Answer

A constant growth rate of 2 percent per year would result in an upward sloping growth path over a 20 year period. While there may be some fluctuations in the short-term, the overall trend would be upward.

If Our Economy Is Growing at a Constant Rate of 2