What two growth rates comprise of the growth rate of potential GDP?
A)Capital gains and investment
B)Money and prices
C)Labor input and hours worked
D)Government spending and net exports

Question

Quizplus · Accepted Answer

The growth rate of potential GDP is determined by the growth rates of labor input and hours worked. These factors contribute to the economy's capacity to produce goods and services over time. Capital gains and investment, money and prices, and government spending and net exports are all important factors in the economy, but they do not directly determine the growth rate of potential GDP.

What Two Growth Rates Comprise of the Growth Rate of Potential