Long period of slow economic growth

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Following a long period of slow economic growth, the government of country X decided to open its economy and reduce trade barriers in order to boost economic growth. This provided the expected impetus to the economy as competition increased and the efficiency of domestic firms improved. A decade after opening the economy, the country's GDP is now growing at an average of 7-8 percent annually. A group of economists claim that the standard of living of the people has improved substantially during this perios. They also expect this impressive gorwth to continue over the next five years.

Which of the following, if true, will indicate that the country may not be able to maintain this average growth over the next few years?

a. The central bank announced its intention to take appropriate measures to ensure that inflation stays within control.

b. Imports account for 12 percent of the country's GDP.

c. The domestic currency is expected to remain stable in the near future.

d. The investment in public infrastructure has steadily increased over the last four years.

e. The government reduced FDI restrictions in many domestic industries.

Reference no: EM131098351

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