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Figure: Technological Progress and Productivity Growth
-(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?

Question

Use the following to answer questions :
Figure: Technological Progress and Productivity Growth 
-(Figure: Technological Progress and Productivity Growth) Look at the figure Technological Progress and Productivity Growth. Which of the following changes in real GDP is most likely to have resulted from an increase in domestic savings?

Quizplus · Accepted Answer

An increase in domestic savings typically leads to more investment in capital, which can enhance productivity and shift the production possibilities frontier outward, resulting in a movement from A to B, indicating growth in real GDP.

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