Briefly Explain the Factors Behind the Low Output Growth That

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The Answer is Despite the bounceback in output growth from negative territory since 2009, many problems continue to keep output growth low. For a start, housing prices are still declining, which continues to depress the level of housing investment. Banks have not recuperated fully and the credit line is not yet flowing freely to consumers and firms. As a result, consumer spending and firm investment remain subdued. With reduced tax revenue and facing the need to prop up the economy through high levels of spending, many governments in the advanced world are struggling with high budget deficits, and are struggling to find a balanced approach to reducing the deficits without jeopardising output growth.

Briefly Explain the Factors Behind the Low Output Growth That

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