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1 vote
True or False: Raising annual trend growth by 0.5 percentage points would do much more for the next generation than eliminating cyclical fluctuations around the trend

1 Answer

5 votes

Answer:

False

Step-by-step explanation:

The cyclical fluctuations around the trend may be higher than the 0.5 percentage points at which the annual trend growth is being raised. This implies that just raising the annual trend growth by a percentage point without due consideration of the cyclical fluctuation rates does not do much good for the next generation. Therefore, holistic consideration should be paid to all factors before final decision is taken.

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User Abido
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