According to the classical view in economics, which variable or policy 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, an increase in capital stock, such as investment in physical and human capital, can influence economic growth in the long run by increasing productivity and potential output. Increases in money supply or nominal interest rates are considered to have short-term effects on the economy, and increasing unemployment benefits may not have a direct positive impact on economic growth.

According to the Classical View in Economics, Which Variable or Policy