An economic growth model explains
A)changes in real GDP per capita in the long run.
B)how changes in the money supply affect real interest rates.
C)changes in government tax policies over time.
D)the growth rate of the price level over time.
E)changes in a country's population over time.

Question

Quizplus · Accepted Answer

An economic growth model focuses on the long run changes in real GDP per capita, which refers to the average output per person in an economy. The model explains the factors that drive economic growth, such as investments in physical and human capital, technological advancements, and institutional factors. It does not focus on short-run changes in the money supply, tax policies, or population growth. It also does not explain the growth rate of the price level over time.

An Economic Growth Model Explains