Offer a skeptical perspective on the long-term economics of the recent increase in trend rate productivity.

What will be an ideal response?

The doubts that the skeptics raise are whether the increases in productivity and economic growth can be sustained over a long period of time. Skeptics question whether the current trend is a short-term economic expansion rather than a long-term structural change in the economy. Economic boom can also create shortages and contribute to inflationary pressure in the economy if the productivity increases do not keep pace with the expanding demands on the economy. The excessive demand can increase the general level of prices. The response of the Federal Reserve to increasing inflationary pressure is to raise the target for short-term interest rates. This action can reduce investment spending and slow economic growth.