The growth rate of potential GDP is the sum of two other growth rates.These other growth rates are
A)population and resource base.
B)goods output and services output.
C)labor input and labor hours worked.
D)labor input and labor productivity.

Question

Quizplus · Accepted Answer

The growth rate of potential GDP is determined by the growth rate of labor input and the growth rate of labor productivity. Labor input refers to the amount of hours worked by workers and the number of workers employed, while labor productivity is the amount of output per worker. Therefore, the correct answer is D.

The Growth Rate of Potential GDP Is the Sum of Two