Fiscal Policy Quick Check

Question

4 of 54 of 5 Items
Question
What is considered healthy economic growth for fiscal policy in terms of percent of Gross Domestic Product (GDP) per year?(1 point)
Responses

0% to 1%
0% to 1%

2% to 3%
2% to 3%

3% to 4%
3% to 4%

4% to 5%

Answer 1

Healthy economic growth is typically considered to be in the range of 2% to 3% of Gross Domestic Product (GDP) per year. This range is often seen as sustainable and indicative of a growing economy without leading to significant inflationary pressures. So, the correct response is:

2% to 3%.