The Growth Rate of Potential GDP Is Not Affected by

question 180

Multiple Choice

The growth rate of potential GDP is not affected by

• A)the growth rate of the labor force.
• B)the growth rate of a nation's capital stock.
• C)the rate of technological progress.
• D)environmentalists' ability to pass regulations.

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Definitions:

Capital

A resource, either financial or physical, that is employed with the aim of generating wealth through investment or production.

Public Corporation

A company whose shares are traded publicly on a stock exchange, and ownership is open to the public.

Computer

An electronic device capable of processing, retrieving, and storing data, executing programmed instructions to perform a wide range of tasks.

Unlimited Wants

The economic concept that humans have a never-ending series of desires that cannot be fully satisfied.