Potential GDP per labor hour can increase due to

Question

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Potential GDP per labor hour can only increase if there are improvements in labor productivity, such as advancements in technology and production efficiency. Increases in the quantity of money (option A) would likely lead to inflation rather than an increase in potential GDP per labor hour. Decreases in the quantity of capital (option B) would likely lead to a decrease in potential GDP. Increases in population (option C) may lead to an increase in actual GDP, but not necessarily an increase in potential GDP per labor hour.

Potential GDP Per Labor Hour Can Increase Due to