Explain the demand factor in economic growth.
What will be an ideal response?
While the supply factors created the potential for more production, the demand side must respond by purchasing the goods. Households, businesses, and government must expand demand so the market can reach the new level of output. Total spending in the economy needs to match potential production.
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Which of the following is most likely produced in a monopolistically competitive market?
a. soybeans b. autos c. fast food d. oil e. local phone service
The term "balance of trade" refers to the:
a. importing and exporting of goods. b. importing and exporting of goods and services. c. current account trade balance. d. capital outflows minus inflows.
In the following index, which year is most likely to be the base period: 2003 = 123.3; 2004 = 145.3; 2005 = 111.4; 2006 = 100; 2007 = 94.3?
a. 2003 b. 2004 c. 2005 d. 2006 e. 2007
Socialism is an economic system characterized by:
A. private ownership of resources and market decision-making. B. government ownership of resources and centralized decision-making. C. cooperation, sharing, and little central government. D. a complex structure of rules and traditions that dictates decision-making.