Question

Issues of growth are generally considered in: Multiple Choice neither the short-run nor the long-run frameworks. the short-run framework. the long-run framework. both the short-run and the long-run frameworks.

Answer 1

Answer:

the long-run framework.

Explanation:

In Economics, Growth can be defined as an increase or rise in the level of output and production of goods and services over a specific period of time by a business entity.

Issues of growth are generally considered by economists in the long-run framework because growth itself is a long-run phenomenon in economics.

A long-run growth refers to the continuous and sustained increase in the level of output of goods and services or quantity of production that a business is able to achieve.

Hence, all of the four factors of production affects the level of growth that is being experienced by an individual or organization. These factors are;

1. Capital.

2. Labor.

3. Land.

4. Entrepreneur.

In a nutshell, business owners and economist usually consider the growth of a business as a long-run phenomenon rather than as a short-run phenomenon.