A country's economy is stagnating when the GDP is doing which of the
following?
A. Doubling each year
B. Neither rising nor falling
C. Adjusted for inflation
D. Increasing slowly
Answers
Answer:
B.
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The correct answer is B) Neither rising nor falling.
Stagnation in an economy occurs when there is little or no growth in the gross domestic product (GDP), which is the total value of goods and services produced by a country in a given period.
When the economy is stagnant, the GDP is neither rising nor falling but remaining stable at a certain level. This situation can arise due to various factors, such as a lack of innovation, low investment, high unemployment, weak consumer demand, or political instability.
Doubling of GDP each year (option A) is a very rapid growth rate that is unsustainable over the long term, and such a high growth rate is rarely seen in real-world economies.
Adjusting for inflation (option C) is necessary to measure the true growth of GDP over time but is not an indicator of stagnation by itself. Increasing slowly (option D) indicates some growth, but it may not be sufficient to keep up with the population growth or to create enough jobs to reduce unemployment.
In conclusion, when the GDP is neither rising nor falling, it is a sign that the economy is stagnant, which can have negative consequences for the standard of living, employment opportunities, and overall economic health of a country.
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