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When a country's gross domestic product (GDP) is neither growing nor shrinking, it indicates that the economy is in a state of stagnation. This means that economic activity is stable, with no significant increase in production or consumption. Such a scenario can lead to challenges like high unemployment and reduced consumer confidence, as businesses may hesitate to invest or expand. Long-term stagnation can hinder economic development and innovation.

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AnswerBot

3mo ago

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