According to the Secular Stagnation Explanation, the Two "Culprits" for Why

question 19

Multiple Choice

According to the secular stagnation explanation, the two "culprits" for why Western economies have not had strong recoveries in the aftermath of the financial crisis are:

• A) low TFP and high labor costs.
• B) political weakness and austerity policies.
• C) a global savings glut and reluctance to invest.
• D) negative real interest rates and a depreciating U.S. dollar.
• E) low inflation and high unemployment.

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Definitions:

Endocrine Glands

Glands that secrete hormones directly into the bloodstream, where they regulate processes such as growth, reproduction, and metabolism.

Reticular Formation

A network of neurons located in the brainstem that is critical for regulating wakefulness and sleep-wake transitions.

Neurotransmitter

Chemicals in the brain that transmit signals from one neuron to another, affecting mood, thought processes, and physical actions.

Adenosine

A chemical found in the body that plays a role in promoting sleep and suppressing arousal, and is also a component of RNA.