Question

Increase in income for economic growth should be based on which factor?

• A. Increase in government spending
• B. Increase in population
• C. Increase in price levels
• D. Increase in productive capacity of the country

Answer 1

Answer:

D. Increase in productive capacity of the country

• Sustainable economic growth depends on an increase in the productive capacity, i.e., the ability of the economy to produce more goods and services