Real GDP grows when
I. the quantities of the factors of production grow.
II. persistent advances in technology make factors of production increasingly productive.
III. human capital grows.

Question

Quizplus · Accepted Answer

Real GDP grows when there is growth in the quantities of the factors of production (I), when there is persistent advances in technology that make factors of production increasingly productive (II), and when there is growth in human capital (III). Therefore, all three choices (I, II, and III) are correct.

Real GDP Grows When