ECON 219: Secular Stagnation and Macroeconomics

A period of rapid economic growth with minimal financial instability

A short-term fluctuation in GDP growth that can be easily addressed through monetary policy

A trend decline in growth that has occurred since the late 1990s, accompanied by an inability to achieve growth without financial instability (correct)

A golden era of economic growth with low inflation and high employment

Only fiscal policy decisions

The economic growth rate is solely determined by the natural rate of growth

Cyclical developments, such as ups and downs in the economy, can cause permanent scarring (correct)

Only monetary policy decisions

A period of rapid inflation

Cyclical developments that can produce long-term scarring on the economy (correct)

A type of monetary policy tool

A sudden and sharp increase in economic growth

<p>A situation where the interest rate is at zero, limiting the government's ability to stimulate the economy</p> Signup and view all the answers

<p>The problem is due to productivity and technical change</p> Signup and view all the answers

<p>Ever more fiscal and monetary policy support</p> Signup and view all the answers