Question

describe some of long run problems associated with ongoing economic growth

Answer 1

The first long run problem is the rise in price level with the ongoing economic growth. The price level is nominal variable that can achieve a new height even if the Real GDP is at the long run equilibrium. The second long run problem is the rising national debt that will create more tax burden on the coming generation or reduction in spending on development programs. It will also create problems for the social security programs. The third long run problem is accumulation of discouraged or underemployed workers that will not be considered in the official unemployment rate. At the same time, part time workers will be flooded to inflate the employment rate, making economy to achieve the natural rate of unemployment. But, it will not be correct.