SSC MTS EXAM

Detailed explanation-1: -Productivity growth occurs when we find ways to produce more with a given amount of labour and capital. Productivity growth is often associated with increases in efficiency and advances in technology. Increases in aggregate supply increase the productive capacity of the economy (usually called potential output).

Detailed explanation-2: -Economic growth means that an economy has increased its ability to produce more. When an economy is producing beyond potential output, it might have experienced an increase in real GDP, but that is not economic growth.

Detailed explanation-3: -An expansion is a period when economic output increases. That is, more goods and services are being produced in the economy. As the economy expands, businesses, or “firms, ‘’ tend to use more resources-including labor.

Detailed explanation-4: -Economic growth describes how much an entity, such as a country, is increasing and improving the goods and services it produces.