An increase in _____ does not lead economic growth.

Question

Quizplus · Accepted Answer

An increase in money supply and capacity utilization does not directly lead to economic growth. Economic growth is primarily driven by factors such as investments in human capital (education, skills) and physical capital (machinery, infrastructure), technological advancements, and improvements in productivity. While increasing the money supply can stimulate economic activity in the short term, it does not inherently contribute to long-term growth. Similarly, capacity utilization reflects the extent to which an economy or firm is using its installed productive capacity; while important for efficiency, simply increasing utilization without improvements in capital or innovation does not lead to growth.

An Increase in _____ Does Not Lead Economic Growth