Question

On average, what percentage does real GDP grow over the long run?

	a.	3%
	b.	5%
	c.	4%
	d.	1%
	e.	2%

Answer 1

On average,what percentage does real GDP grow over the long run?

Option 'e' 2% is the correct answer, because the Congressional Budget Office estimates that real GDP will grow an average of 2 % per year at the same pace as its estimate of maximum potential growth.
Long-run growth is defined as the constant rise in the quantity of goods and services that an economy produces. The GDP of a country is fixed to the growth of the population in addition to prices and supply and demand.