A major goal of long-run economic policy is to:

Question

Quizplus · Accepted Answer

The ultimate goal of long-run economic policy is to increase potential GDP (gross domestic product) which refers to the maximum amount of goods and services that an economy can produce. Increasing potential GDP leads to higher living standards, greater economic stability, and reduced poverty. Therefore, policies that focus on increasing productivity, innovation, and investment are essential for achieving this goal. Increasing food production, reducing transfer programs, and increasing population can have an impact on the economy, but are not the primary objectives of long-run economic policy.

A Major Goal of Long-Run Economic Policy Is To