The Long-Run Trend in Real GDP Is Upward

question 114

Essay

The long-run trend in real GDP is upward. How is this possible given business cycles? What explains the upward trend?

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing shareholders with a claim on company assets and earnings.

Standard Deviation

Standard deviation is a statistical measure that quantifies the amount of variation or dispersion of a set of data values, typically used to assess the volatility of financial instrument prices.

Canadian Common Stocks

Shares of publicly traded companies based in Canada, representing ownership in those companies.

Normal Distribution

A probability distribution that is symmetric about the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.