Question

How does investing in Human Capital affect GDP?

Answer 1

Answer:

Human capital like machines can be improved to increase production(GDP).

Explanation:

Human capital is all the creative skills and knowledge embodied in the individual participant of the economy(households), it is basically the know how of the people.
technological improvement means that machines are going to be more efficient and production will rise in general, Human capital like machines can be improved to increase production(GDP).

Most developing countries are packed with uneducated people and this reduce the growth level of growth.
When people become skillful(educated) they tend to produce more, by definition GDP is the amount of production produced within the borders of the country.
Increase in production = GDP increase.