What are the two broad categories that sources of economic growth can be classified into?
Understand the Problem
The question asks you to identify the two main classifications of the sources that contribute to a country's economic growth. This requires recalling the fundamental factors driving economic expansion, often discussed in economics courses.
Answer
The two broad categories of economic growth are short-run and long-run.
The two broad categories that sources of economic growth can be classified into are:
- Short-run economic growth
- Long-run economic growth
Answer for screen readers
The two broad categories that sources of economic growth can be classified into are:
- Short-run economic growth
- Long-run economic growth
More Information
Economic growth signifies an increase in the production of goods and services within an economy. It is commonly gauged by the percentage increase in real gross domestic product (GDP).
Tips
A common mistake is confusing nominal economic growth with real economic growth. Nominal refers to the increase in the dollar value of production over time, while real accounts for inflation.
Sources
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