Economic Growth

question 107

Multiple Choice

Economic growth:

• A) Is an increase in output or real GDP.
• B) Causes a contraction in the production possibilities curve.
• C) Involves reduced capacity in the short run.
• D) Cannot be sustained over time.

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Definitions:

Agriculture Products

Goods produced through the cultivation of plants and the raising of animals to provide food, fiber, and other products.

Monetary Contraction

A policy or economic condition where the money supply is reduced, often leading to higher interest rates.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic growth during the Great Depression by reducing unemployment and eliminating cutthroat competition.

Business Cartels

Groups of independent businesses that regulate production, pricing, and marketing by agreement among members to limit competition.