What is the opportunity cost of economic growth, Macroeconomics

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What is the opportunity cost of economic growth?

Opportunity cost measures the cost of an economic option within terms of the next best option foregone.

The government of a developing country only meeting its important wishes may chose to reallocate resources through the production of consumer gods to investment the goods.

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Opportunity cost of economic growth: The economy moves from A to B

The short run opportunity cost of HG additional investment is ED lost consumer goods probably essentials. People might starve for additional producer goods.


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