Economic growth
A)Is an increase in output or real GDP.
B)Causes a contraction in the production possibilities curve.
C)Involves reduced capacity in the short run.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

Economic growth refers to an increase in a country's output or real GDP over time. It is usually measured by the percentage increase in real GDP. Therefore, option A is the correct answer. Option B is incorrect because economic growth expands a country's production possibilities curve rather than contracting it. Likewise, option C is incorrect since economic growth increases productive capacity.

Economic Growth