Suppose that because of an economic downturn, 20% of the labor force is unemployed. As the economy picks up and these workers begin to return to work, long-run economic growth can occur.

Question

Quizplus · Accepted Answer

Long-run economic growth is primarily driven by increases in productivity and factors such as technological advancements, capital accumulation, and improvements in human capital, rather than simply changes in employment levels due to economic cycles.

Suppose That Because of an Economic Downturn, 20% of the Labor