Answered: Long-run growth occurs when an economy:…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Long-run growth occurs when an economy:
(a) makes use of existing but underutilized productive capacity.
(b) expands its productive capacity by acquiring new resources or making better use of existing
resources.
(c) moves from one point to another on its production possibility frontier.
(d) moves from a point inside its production possibility frontier to a point on the frontier

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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