To increase the pace of economic growth we must increase the growth rate of _ _ or increase the growth rate of .

Question

Quizplus · Accepted Answer

Capital per hour of labor is a determinant of productivity, which directly affects economic growth. Technological progress, on the other hand, enhances productivity and creates new products and markets, fueling long-run economic growth. Therefore, increasing the growth rate of either or both of these factors can increase the pace of economic growth. The other options, such as aggregate supply/demand, price level, real wage rate, aggregate work hours, and consumption, are not directly related to enhancing productivity, which is a key driver of economic growth.

To Increase the Pace of Economic Growth We Must Increase