Economic growth is an exponential process because gains made in one year accumulate in future years.

Name: Economic growth is an exponential process because gains made in one year accumulate in future years.
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Question

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Economic growth is characterized as exponential because the gains made in one period contribute to higher levels of production and generate gains in the future, resulting in a compounding effect. This compounding effect causes economic growth to be exponential over the long run.

Economic Growth Is an Exponential Process Because Gains Made in One