Technological change:

Question

Quizplus · Accepted Answer

Technological change increases total factor productivity by introducing new and more efficient production methods, leading to economic growth and higher output levels without requiring additional inputs. Infrastructure maintenance is also important, but technological change has a greater impact on long-term economic growth. Technological change also does not shift the aggregate production function downward, as it increases efficiency and output levels. Lastly, consumption increases at the expense of saving are not required for technological change, as innovations can also lead to cost savings and increased profitability for firms.

Technological Change