To have long-term economic growth, the production function suggests

Question

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The production function suggests that increasing the availability of technology, capital, and labor can lead to long-term economic growth. This is because these factors of production can increase the efficiency and productivity of businesses, leading to higher levels of output and economic growth. Keeping interest rates high to encourage saving (Choice A) may be important for short-term economic stability, but may not necessarily lead to long-term growth. Increasing government oversight of business decisions (Choice C) may lead to increased regulation and bureaucracy, potentially hindering economic growth. Redistributing income from the wealthy to the poor (Choice D) may have beneficial effects on income inequality and social welfare, but may not necessarily lead to long-term economic growth.

To Have Long-Term Economic Growth, the Production Function Suggests