Question

To have long-term economic growth, the production function suggests:

Answer 1

Answer:

Option (C) is correct.

Explanation:

We know that gross domestic product (GDP) of a nation plays a very important role in the long run economic growth. Long run economic growth will be directly impacted by the nation's GDP.

GDP of a nation increases with increase in the production of goods and services. If there is a availability of advanced technology, more capital and large number of labor then this will lead increase the productivity of employees and directly contributes towards the production of a nation.

Hence, the GDP of a nation increases, as a result long term economic growth will also increases.