One way that an economy can grow in the long run is by:

Question

Quizplus · Accepted Answer

When people save some of their income, it can be invested by firms in capital goods, which can increase productivity and ultimately result in economic growth in the long run. This is because the increased productivity can lead to increased output and potentially higher incomes for individuals. Option B and D, where people spend more on consumption or consume more than they earn, do not lead to long-term economic growth as they do not contribute to increased productivity. Option C, running continual budget deficits, is not a sustainable way to achieve economic growth as it can result in high levels of debt and ultimately financial instability.

One Way That an Economy Can Grow in the Long