Moderate

Economic model describing growth of the economy on one or at most a few sectors and variables?

Correct answer: C. Aggregate growth model

  • A. Formal growth model
  • B. Functional growth model
  • C. Aggregate growth model
  • D. None

Explanation

An aggregate growth model explains economic growth using economy-wide variables such as total output, saving, investment and labour. It does not focus on the detailed behaviour of individual sectors or firms.

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