Output Growth in the United States in the Period 1996

question 18

Essay

Output growth in the United States in the period 1996 to 2008 averaged three percent per year. Though this was an improvement on the 2.9% average annual growth of output over the preceding 20 years, an increase of one-tenth of a percentage point seems hardly to justify the popularity of the label "new economy." Comment.

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Definitions:

Anticompetitive Effect

Any action, law, or policy that reduces the level of competition in a market, potentially leading to harmful effects such as higher prices or reduced innovation.

Relevant Market Definition

The identification of the bounds of competition including both the geographic and product spaces in which firms compete.

Federal Trade Commission (FTC)

A U.S. federal agency established for the purpose of protecting consumers and promoting competition by preventing anticompetitive, deceptive, and unfair business practices.

Clayton Act

An antitrust law enacted in 1914 to prevent anti-competitive practices, monopolies, and to protect the rights of consumers and businesses.