Long-run growth in real GDP is determined primarily by _____, while short-run movements in real GDP are associated with _____.
A)variations in labour-market utilization; technological progress
B)technological progress; variations in labour-market utilization
C)money supply growth rates; changes in velocity
D)changes in velocity; money supply growth rates

Question

Quizplus · Accepted Answer

Long-run growth in real GDP is primarily driven by technological progress, which enhances productivity and efficiency. Short-run movements in real GDP are often linked to variations in labor-market utilization, such as changes in employment levels and hours worked.

Long-Run Growth in Real GDP Is Determined Primarily by _____