When an economy experiences long-run economic growth, a larger output can be achieved
A) only if there is a reduction in the natural rate of unemployment.
B) only if the economy's actual unemployment is less than the natural rate.
C) if prices increase.
D) even though unemployment remains at its natural rate.

Question

Quizplus · Accepted Answer

Long-run economic growth refers to an increase in a country's potential output or the maximum amount of goods and services that can be produced with existing resources and technology. This can occur even if unemployment remains at its natural rate, as the growth is generated by factors such as technological advancements, increased capital investment, and improved productivity.

When an Economy Experiences Long-Run Economic Growth, a Larger Output