An expansion in a country's capital stock is associated with a(n)_____.

Question

Quizplus · Accepted Answer

An expansion in a country's capital stock, which refers to the amount of machinery, factories, equipment, and other physical capital that is used to produce goods and services, is associated with an increase in potential GDP. This is because when a country has more capital, it is able to produce more output, which leads to a higher potential for economic growth and higher levels of income.

An Expansion in a Country's Capital Stock Is Associated with A(n)_____