Which of These Partly Accounts for the Long-Term Growth in Production

question 23

Multiple Choice

Which of these partly accounts for the long-term growth in production in the U.S.economy?

• A)An increase in government spending
• B)An increase in the availability of resources
• C)A reduction in federal taxes
• D)A gradual but consistent increase in the price level
• E)A general optimism about the future and the pioneering spirit of America

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Definitions:

Price Support Programs

Government interventions to maintain the market price of a commodity or product above its equilibrium level to benefit the producers.

Agricultural Products

Agricultural products are commodities produced through farming and agriculture, such as crops, livestock, and other raw goods.

Shortages

A market situation in which the demand for a product exceeds its supply at a particular price.

Farm Price-Support Programs

Government initiatives designed to stabilize or increase prices of agricultural products by buying excess supply, providing subsidies, or setting minimum prices.