Which of the following does not help to explain differences in growth rates across countries?
A) Differences in labor growth rates
B) Differences in capital growth rates
C) Differences in labor productivity growth rates
D) Differences in total factor productivity growth rates
E) Differences in inflation rates

Question

Quizplus · Accepted Answer

Inflation rates do not directly affect economic growth rates. While high inflation rates can create uncertainty and reduce investment, low inflation rates do not necessarily guarantee high economic growth. Therefore, differences in inflation rates cannot explain differences in growth rates across countries.

Which of the Following Does Not Help to Explain Differences