Discuss what long-term economic growth is and if there are any limits to the U.S. long-term economic growth? If so, what are they? Is there anything that our government can do to address these limits?
Long term economic growth refers to economic growth with the long run trend in production. This long term trend occurs because of technological improvements/growth and factor accumulation. For example, if there is sustained accumulation of capital in the United States there can be long term growth. In the past, the United States has experienced long term growth from three factors: the accumulation of human capital, the accumulation of physical capital, and technological innovation. The use of innovation to develop new ...
Long run trend in production is discussed step-by-step in this solution. The response also has the sources used.