If the GDP in One Year Is Greater Than It

question 94

True/False

If the GDP in one year is greater than it was in the previous year,then economic growth must have occurred.

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Definitions:

New Firms

New firms refer to businesses that have been recently established and are in the early stages of their operational life.

Long-Run Equilibrium

A state in which all factors of production can be adjusted, allowing firms to enter or exit the market, resulting in a situation where economic profits are zero in a perfectly competitive market.

P = MR

An economic principle where the price (P) of a product equals its marginal revenue (MR), often applied in perfectly competitive markets.

Minimum ATC

The lowest point on the Average Total Cost curve, where a firm is producing at the most cost-efficient level.