The three determinants of the supply of real GDP are
A)labor, capital, and potential GDP.
B)labor, capital, and households.
C)labor, capital, and technology.
D)labor, capital, and markets.
E)labor, capital, and government.

Question

Quizplus · Accepted Answer

The three determinants of the supply of real GDP are labor, capital, and technology. Labor refers to the number of workers and their skills, capital refers to the physical tools and equipment used in production, and technology refers to the knowledge and techniques used to produce goods and services. These three factors determine a country’s potential to produce goods and services, which is reflected in its potential GDP.

The Three Determinants of the Supply of Real GDP Are