Question

Which of the following is not a potential cause of stagnant economic​ growth?

A. Insignificant productivity growth forthcoming from more recent technologies

B. Minimal payoffs from human capital investments

C. Growth minus reducing effects of governmental and regulatory policies

D. The avoidance of protectionist barriers that hinder international trade.

Answer 1

Answer: Option D

Explanation: In simple words, stagnant economic growth refers to a situation when an economy faces very low or no economic growth for a long period of time.

Generally when an economy faces less than 2 percent economic growth for a period of more than one year, than it will be considered as stagnant economic growth.

Avoidance of protectionist barriers are sometimes implemented to increase exports and decreasing deficit or for protecting the industries that are of high importance. Hence such barriers do not cause hindrance in growth.