...it depends on society’s desires and values. Optimal output occurs where marginal cost = marginal benefit. General rule: as output increases, MB declines while MC increases… Graph Economic Growth and PPC The growth of economic capacity can be depicted as an outward shift in PPC. Increases...
The increase in the activity level of the economy leads to economic growth. In the economic growth, the gross domestic product also increases in the country. It makes the rise in the value of the products and the services in the country....
However, this means prices were rising by 7 per cent in 2015 and again by 7 per cent in 2016. 2.(a) A – Incorrect – the growth rate fell. However, because the growth rate is positive, this still means real GDP (output) is increasing (but at a slower rat...