While short-run growth increases capacity,long-run growth increases capacity utilization.

Question

Quizplus · Accepted Answer

Short-run growth refers to the increase in the quantity and quality of inputs (such as labor, capital, and technology) that results in an increase in output or capacity. Long-run growth, on the other hand, involves increases in the efficiency and productivity of those inputs, leading to higher levels of capacity utilization.

While Short-Run Growth Increases Capacity,long-Run Growth Increases Capacity Utilization