Which of the following does NOT contribute to an economy's long-run potential growth rate?
A) the average rate of inflation
B) the level of technology
C) the number of workers
D) the level of investment

Question

Quizplus · Accepted Answer

The average rate of inflation does not contribute to an economy's long-run potential growth rate. In fact, high and unpredictable inflation can actually hinder economic growth by causing uncertainty and reducing investment. The other choices, level of technology, number of workers, and level of investment, are all important factors that contribute to an economy's long-run potential growth rate.

Which of the Following Does NOT Contribute to an Economy's