To have long-term economic growth, the production function suggests:

(A) keeping interest rates high to encourage saving.

(B) redistributing income from the wealthy to the poor.

(C) increasing the availability of technology, capital, and labor.

(D) increasing government oversight of business decisions.

Question

Business

Royce Waters

2 May, 21:05

To have long-term economic growth, the production function suggests:

(A) keeping interest rates high to encourage saving.

(B) redistributing income from the wealthy to the poor.

(C) increasing the availability of technology, capital, and labor.

(D) increasing government oversight of business decisions.

+2

Answers (1)

Know the Answer?

Clarissa Kane · Answer 1

Option (C) is correct.

Explanation:

We know that gross domestic product (GDP) of a nation plays a very important role in the long run economic growth. Long run economic growth will be directly impacted by the nation's GDP.

GDP of a nation increases with increase in the production of goods and services. If there is a availability of advanced technology, more capital and large number of labor then this will lead increase the productivity of employees and directly contributes towards the production of a nation.

Hence, the GDP of a nation increases, as a result long term economic growth will also increases.

To have long-term economic growth, the production function suggests:(A) keeping interest rates high to encourage saving.(B) redistributing income from the wealthy to the poor.(C) increasing the availability of technology, capital, and labor.(D) increasing government oversight of business decisions.