The factor that ultimately determines the change in the stock of capital, the level of real wages, and the output of an economy is

Question

Quizplus · Accepted Answer

Net investment is the change in the stock of capital and hence determines the output of an economy. Real wages may be affected by various factors including productivity, labor market conditions, and technology while GDP is a measure of the value of goods and services produced in an economy. The labor force and unemployment level are important indicators of labor market conditions but do not directly determine the level of output or real wages.

The Factor That Ultimately Determines the Change in the Stock