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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?


Definitions:

Every Three Months

A quarter-yearly interval, commonly used in the context of financial payments, reporting periods, or other scheduled events.

Coupon Payments

Regular interest payments made to bondholders as compensation for the investment and loan of capital.

Semi-Annual Interest

Interest that is calculated and paid twice a year, often used in bond markets.

Yield-To-Maturity

The total return expected on a bond if held until its maturity date.

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