Policies for Increasing Economic Growth and Employment in the Short Term: Congressional Testimony
Nov. 2010 · DIANE Publishing
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The U.S. has just suffered through the most severe recession since the 1930s. The good news is that the economy appears to be starting to recover. In all likelihood the recovery will be dampened by a number of factors, including the continuing fragility of some financial markets and institutions; declining support from fiscal and monetary policy; and limited increases in households¿ spending because of slow income growth, lost wealth, and a large number of vacant houses. Real GDP will increase by 2.4 percent in 2011. Real GDP will accelerate after 2011. For 2012 through 2014, real GDP will increase by an average of 4.4 percent per year, which would close the gap between actual output and potential output by the end of 2014. Figures.
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