It is sometimes hard to separate the impact of technology from that of investment because
A) you can directly measure investment, but there is no way to quantify new technology.
B) neither has been a major factor in economic growth for about 10 years now.
C) technology has grown at a such a variable rate that its impact cannot be effectively measured.
D) new technology is useful only when it is embodied in the physical capital financed through investment.
E) neither activity is reflected in the prices we pay for goods and services.

Question

Quizplus · Accepted Answer

New technology can only have an impact when it is actually embodied or incorporated into physical capital, such as machinery or equipment, which is ultimately financed through investment. Therefore, it can be hard to separate the impact of technology from that of investment, as they are closely intertwined.

It Is Sometimes Hard to Separate the Impact of Technology