According to Long-Run Growth Models, Which of the Following Is

question 73

Multiple Choice

According to long-run growth models, which of the following is least likely to increase potential output?

• A)increased levels of entrepreneurship
• B)higher levels of saving and capital accumulation
• C)increased aggregate demand
• D)more rapid development of growth-compatible institutions

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Definitions:

Price Discrimination

The practice of selling the same product to different buyers at different prices based on willingness to pay, not differences in cost.

Identical Goods

Products that are indistinguishable from each other in terms of quality, function, and characteristics.

Production Costs

The total expense incurred in manufacturing a product or providing a service, including raw materials, labor, and overhead expenses.

Monopolistic Competition

An industry that has many firms producing a differentiated product.