According to the classical view in economics,which of the following variables or policies can influence economic growth in the long run?
A)an increase in capital stock
B)an increase in money supply
C)an increase in unemployment benefits
D)an increase in nominal interest rates

Question

Quizplus · Accepted Answer

According to the classical view in economics, an increase in the capital stock (e.g. through investments in physical or human capital) is a primary driver of long-term economic growth. This is due to the idea of increasing productivity through the availability of more resources for production. The other options (B, C, D) may have short-term effects on the economy, but are unlikely to have a sustained impact on economic growth in the long run.

According to the Classical View in Economics,which of the Following