ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Potential growth is the rate of growth that an economy can sustain over the medium term without generating excess inflation.
Detailed explanation-2: -Strengthening productive capacity Quantity of labour – The most crucial factor is how wide and how qualified is the range of an economy’s labour. With more economically active people, low unemployment and a high level of human capital, the economy is more able to move its PPF to the right.
Detailed explanation-3: -The amount of goods and services that an economy is capable of producing.
Detailed explanation-4: -Economic growth occurs when an economy’s production at the full employment level increases. Increase in the production at the full employment level is shown by an outward shift of production possibility frontier (PPF).