Which of the following policies is most likely to have an effect on GDP in the long run?
A)increase consumption
B)increase government purchases
C)increase labour productivity
D)reduce unemployment rates
E)change factor utilization rates

Question

Quizplus · Accepted Answer

Increasing labor productivity is most likely to have a significant effect on GDP in the long run as it leads to an increase in the output of goods and services per unit of labor input. This can lead to higher economic growth as it increases the potential output of an economy. The other options are likely to have a more short-term impact on GDP. For example, an increase in consumption or government purchases may boost GDP in the short run, but if it is not accompanied by an increase in production or efficiency, it may lead to inflation or debt issues in the long run. Reducing unemployment rates and changing factor utilization rates can also have a positive impact on GDP, but they are more limited in scope and may not necessarily lead to sustained economic growth.

Which of the Following Policies Is Most Likely to Have