Long-run growth in real GDP is determined primarily by ______, while short-run movements in real GDP are associated with ______.
A) variations in labor-market utilization; technological progress
B) technological progress; variations in labor-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 mainly determined by technological progress which leads to increased productivity, higher output, and increased standards of living. Short-run movements in real GDP are associated with variations in labor-market utilization such as changes in the employment rate, hours worked, and labor productivity.

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