Question



A country's economy is stagnating when the GDP is doing which of the
following?
A. Doubling each year
O B. Neither rising nor falling
O C. Adjusted for inflation
D. Increasing slowly

Answer 1

Answer: B. Neither rising nor falling

Step-by-step explanation:

Economic Stagnation occurs when there's a flat growth in a particular economy. During economic stagnation, there's increased unemployment and the economy is also not performing well and performing below its potential.

A country's economy is stagnating when the GDP is neither rising nor falling. This results in the lay off of employees by companies which in turn leads to reduction in demand for goods and services and hence economic growth is negatively affected.