At the core of understanding economic growth is the idea that to raise living standards over time, an economy must:
A) Produce and consume goods and services
B) Save and invest
C) Export and import
D) Employ resources and earn incomes

Question

Quizplus · Accepted Answer

Saving and investing are necessary to increase the production capacity of an economy, leading to higher levels of productivity and output over time. By accumulating capital, an economy can purchase more advanced technologies, build new infrastructure, and expand its labor force, all of which can help to boost economic growth and raise living standards. While producing and consuming goods and services, exporting and importing, and employing resources and earning incomes are also important components of economic growth, they are not sufficient in themselves to guarantee sustained improvements in living standards.

At the Core of Understanding Economic Growth Is the Idea