Economic growth will
A) reduce the future real GDP of an economy.
B) expand the production possibilities of an economy.
C) increase an economy's nominal income, but not its real income.
D) increase real output, but the real income level of the country will decline.

Question

Quizplus · Accepted Answer

Economic growth will expand the production possibilities of an economy. This means that with economic growth, an economy will be able to produce more goods and services in the future, increasing its potential output and the standard of living of its citizens.

Economic Growth Will