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-(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. Which change in real GDP is MOST likely to have resulted from an increase in the quality (as well as quantity) of government spending on education?

Question

Use the following to answer questions: 
-(Figure: Technological Progress and Productivity Growth) Use Figure: Technological Progress and Productivity Growth. Which change in real GDP is MOST likely to have resulted from an increase in the quality (as well as quantity) of government spending on education?

Quizplus · Accepted Answer

An increase in the quality (as well as quantity) of government spending on education would have a positive impact on productivity growth, which is represented by the shift from B to C. This shift represents an increase in real GDP due to technological progress and can be attributed to the increase in human capital resulting from the improvement in education. Therefore, C is the correct answer as it shows the greatest increase in real GDP resulting from the government's investment in education.

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