An increase in the long-run equilibrium level of income can result from
A) improved technology.
B) adoption of improved management techniques.
C) a larger capital stock.
D) all of the above.

Question

Quizplus · Accepted Answer

Each of the options mentioned in the answer (improved technology, adoption of improved management techniques, and a larger capital stock) can lead to an increase in productivity and potential output of an economy, resulting in an increase in the long-run equilibrium level of income. Therefore, all of the options (Option D) can result in an increase in the long-run equilibrium level of income.

An Increase in the Long-Run Equilibrium Level of Income Can