Goldilocks Economy is characterized by:

  1. low unemployment rate
  2. low inflation
  3. steady GDP growth

Which of the above statements is/are correct?

Answer: [C] 1, 2 and 3

Goldilocks is an economy that is not so hot that it causes inflation, and not so cold that it causes a recession. There are no exact markers of a Goldilocks economy, but it is characterized by a lowunemployment rate, increasing asset prices (stocks, real estate, etc.), low interest rates, brisk but steady GDP growth and low inflation.


This question is a part of GKToday's Integrated IAS General Studies Module