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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:

Pascal

A unit of pressure in the International System of Units (SI), defined as one newton per square meter.

Hydraulic Circuits

Networks designed to use hydraulic fluid to transmit energy from one component to another within a hydraulic system.

Area Multiplied

The process of calculating the extended surface or space by multiplying dimensions, typically used in geometric calculations.

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