Asked by Carlos Murray on May 06, 2024
Verified
Which of these partly accounts for the long-term growth in production in the U.S.economy?
A) An increase in government spending
B) An increase in the availability of resources
C) A reduction in federal taxes
D) A gradual but consistent increase in the price level
E) A general optimism about the future and the pioneering spirit of America
Government Spending
Government spending involves expenditures by government bodies on public services, infrastructure, defense, social welfare, and more, impacting the economy’s overall fiscal stance.
Resource Availability
This refers to the accessibility and abundance of natural, human, and capital resources which can be used for production.
Pioneering Spirit
The attitude or approach characterized by innovation, taking risks, and trying new things, often in exploration or business.
- Comprehend the variables that influence sustained economic expansion.
Verified Answer
Answer: E
A general optimism about the future and the pioneering spirit of America has also played a role in the long-term growth of the U.S. economy, as entrepreneurs and businesses have been motivated to take risks and innovate, leading to economic growth and development. However, this is not the only factor and is less significant than an increase in resources.
Learning Objectives
- Comprehend the variables that influence sustained economic expansion.
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