In addition to saving and investment in capital, making an even larger contribution to long -term economic growth in real GDP per person

Question

Quizplus · Accepted Answer

Technological advances can lead to increases in productivity and efficiency, which in turn can lead to long-term economic growth in real GDP per person. While a larger work force and higher current consumption may have short-term benefits, they do not necessarily contribute to long-term economic growth. Lower current consumption may lead to increased saving and investment, but by itself may not necessarily lead to long-term economic growth without technological advances.

In Addition to Saving and Investment in Capital, Making an Even