A Sustained Increase in the Amount of Goods and Services

question 71

Multiple Choice

A sustained increase in the amount of goods and services produced is known as:

• A) allocative efficiency.
• B) productive efficiency.
• C) minimizing opportunity costs.
• D) economic growth.

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Definitions:

Classical

Pertains to the classical school of economic thought, focusing on free markets and the self-regulating nature of economies, emphasizing the roles of competition and supply and demand.

Monetarists

Monetarists are economists who believe that variations in the money supply have major influences on national output in the short run and the price level over longer periods.

Supply Side

An economic theory that emphasizes the importance of increasing production and supply as a way to stimulate economic growth, often through tax cuts and deregulation.

Supply-side Arguments

Supply-side arguments focus on the belief that reducing taxes and regulations on businesses will stimulate economic growth by increasing supply, leading to job creation and income growth.