The theory of economic growth concentrates on the over the long run, not on .

Question

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The theory of economic growth focuses on the long-run growth of potential output, which is the maximum sustainable output level given the available factors of production and technology. It is not concerned with short-term fluctuations of output around potential, which are the focus of business cycle analysis. Factors utilization rates and growth of supplies of factors are part of the determinants of potential output, but are not the central focus of economic growth theory. Growth of real GDP is related to economic growth, but it is not the sole focus. Similarly, growth of investment in capital goods is a necessary condition for economic growth, but it is not sufficient by itself.

The Theory of Economic Growth Concentrates on the Over the Long