Which of the following is a true statement about long-run economic growth?


Which of the following is a true statement about long-run economic growth? O A. More countries have per capita incomes greate

Answer

Answer: D. small differences in economic growth rates result in big differences in living standards over time

Economic growth shows the change in GDP of an economy over the time period. Small differences in the growth of an economy in short run makes big differences in the long run. If there is decrease in the value of production of goods and services (GDP) in the short term it will affect the whole economy negatively in long run as it will lead to increase in prices, decrease in aggregate demand, investment and employment level which will impact the lining standard of people.

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