Long- term economic growth

Question

Quizplus · Accepted Answer

Long-term economic growth refers to an increase in the real GDP (gross domestic product) of a country over a sustained period of time. This increase in GDP translates into an improvement in material living standards for the citizens of that country. However, economic growth alone cannot alleviate all poverty or lead to equal income distribution. Achieving long-term economic growth requires changes in the utilization of factors of production such as labor, capital, and natural resources. Expansionary fiscal policy can be used to stimulate economic growth but cannot guarantee it. Therefore, the best choice is E as it is the only option that accurately reflects the relationship between long-term economic growth and improvements in material living standards.

Long- Term Economic Growth