When There Is Economic Growth with Rising Living Standards

question 36

Multiple Choice

When there is economic growth with rising living standards,

• A) business investment increases both LAS and SAS.
• B) business investment increases the quantity and quality of inputs.
• C) increased employment in new factories increases income, so AD increases.
• D) potential GDP is greater in the new long-run macroeconomic equilibrium.
• E) all of the above are true.

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Definitions:

Competitive Marketplace

An economic concept where multiple businesses offer similar products or services, vying for customer attention and market share.

External Environment

The outside factors or influences that impact the operations and success of an organization, including economic, social, and political conditions.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project.

Mission-Related

Pertaining to activities, decisions, or initiatives that directly align with and support an organization's core purpose or objectives.