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:

Duress By Improper Threat

A situation where an individual is forced or coerced into a contract or legal agreement under threats that are unlawful or unethical.

Void Contract

is an agreement without legal effect or binding force from its inception due to failure to meet essential legal requirements.

Justified Reliance

Legitimate dependence by a party on the representation or promise of another, typically in a legal or contractual context.

Scienter

A legal term that refers to knowledge of the wrongful nature of one's act or omission or the intent to deceive or defraud.