1. Given our free market institutions, the U.S. economy can adjust to these recent negative macro shocks and we can retu

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answerhappygod
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1. Given our free market institutions, the U.S. economy can adjust to these recent negative macro shocks and we can retu

Post by answerhappygod »

1. Given our free market institutions, the U.S. economy can adjust to these recent negative macro shocks and we can return to our normal real GDP growth rate (for a cutting edge nation), our natural rate of unemployment, and our preferred rate of inflation of 2%. Furthermore, this "return to normal" can be expedited with effective monetary and fiscal policy.
2. Given all our pro growth institutions (including free and competitive markets), our economy can keep growing at a pace that our real GDP per person can increasing over time, increasing the standard of living in our country from generation to generation.
But while those are the predictions based on economic principles and logic, they are not guarantees. Things can happen, changes can occur, that could block those outcomes from materializing. What, in your opinion, are the biggest threat(s) to either of those two predictions. What could prevent us from stabilizing and returning to our normal ranges of GDP growth, unemployment and inflation? Or, what could prevent us maintaining an increasing standard of living from generation to generation?
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