The rate of economic growth and the rate of technological change are linked by the
A) rate of substitution of labor for capital.
B) diminishing marginal product of labor that induces greater capital investment.
C) rate of inflation, since rapid price changes induce the application of new techniques.
D) gap between actual and potential output, since massive unemployment can induce labor-utilizing technological changes.
E) rate of innovation, since technological change must be applied to have an effect on economic growth.
Correct Answer:
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