The reason that differences in economic growth rates are important in the long run is that
A) growth compounds over time.
B) population naturally shrinks in most countries.
C) real GDP usually drops when adjusted for inflation.
D) nominal GDP typically increases faster than real GDP.

Question

Quizplus · Accepted Answer

Growth compounds over time means that a higher growth rate over a longer period leads to a much larger increase in GDP than a lower growth rate. This is why differences in economic growth rates are important in the long run.

The Reason That Differences in Economic Growth Rates Are Important