Economic growth is an exponential process. What does this mean?
A) It means that the returns to huge capital investments made today will diminish at an increasing rate over time.
B) It means that small differences in sustained growth rates have significant effects on a nation's real income over long periods of time.
C) It means that countries must allocate increasing amounts of resources to capital goods to see constant increases in the growth rate of potential output.
D) It means that if a country allocates a fixed amount of resources to capital goods, its potential output will increase at an increasing rate over long periods of time.
Correct Answer:
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Q6: Economists define economic growth as
A) changes in
Q7: Use the following to answer questions .
Exhibit:
Q8: Economic growth
I. is represented by an outward
Q9: Economic growth is defined as
A) growth in
Q10: Using actual values of real GDP to
Q12: Economic growth is best measured by the
Q13: The rule of 72 states that grows
Q14: Approximately what percentage of families in the
Q15: Use the following to answer questions .
Exhibit:
Q16: Over the past century, the average household
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