Question

Between 2018 and 2029, productivity growth is expected to account for about ________ percent of the growth of real GDP in the United States.

Answer 1

Gross Domestic Product (GDP), also refered to as output or actual output,inflation,interest rates,and other key variables for the years from 2018 to 2029. Considerable uncertainly stemming from both policy and non policy related forces surrounds those projections,but the economy would continue to expand over the next decade but at a slower pace than it did in 2018

Projections for 2019 to 2023:

CBO's projections for the next five show the economy experiencing a silent cycle in which real GDP and employment initially exceed and then return to their respective maximum sustainable levels through slower but still positive economic growth.Over that periods,interest rates are expected to rise above their current levels,helping to bring economic activity to its sustainable level and restrain inflationary pressure.

Output:

Real GDP is projected to grow by 2.3 percent in 2019 and by an average of 1.7 percent per year from 2020 through 2023.Most of the growth of output in CBO's forecast over the next few years is driven by consumer spending and,to a lesser extent,business and residential investment and exports.Compared with the robust pace of output growth in 2018 is 3.1 percent ,fastest annual growth since 2005 output growth is projected to slow in 2019. That projected slowdown largely results from an anticipated slowdown in the growth of business fixed investnent growth begin to wane,and from a sharp reduction in federal purchase starting in the fourth quarter of 2019 that would occur under current law.From 2020 to 2023,in CBO's projections,slower growth of from 2020 to 2023,in CBO's projections,slower growth of consumer spending causes output growth to slow further.

Output Gap:

By CBO's estimate,real GDP began to exceed its potential level in early 2018 for the first time since 2007.Because the growth of real GDP is expected to outpace the growth of ots potential in 2019.the output gap.In CBO's projections,real GDP grows more slowly than potential GDP after 2019,as a result the output gap starts to narrow and turns negative by 2022.