ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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increased taxes
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economic growth
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increased inflation
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decreased productivity
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Detailed explanation-1: -Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth.
Detailed explanation-2: –An increase in the quantity of labor always leads to economic growth.-Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
Detailed explanation-3: -Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.
Detailed explanation-4: -Economic growth does not increase continually, but rather in spurts, by cycling through peaks and recessions. Often, peaks are associated with higher prosperity, but also with higher inflation, while recessions are associated with higher unemployment.