Question

The economic growth model explains growth in real GDP per capita in the long run. Because of the importance of labor productivity in explaining economic​ growth, the economic growth model focuses on the causes of increases in​ long-run labor productivity. What are the key factors that determine labor​ productivity? ​(Mark all that​ apply.)
A. A shift from a​ goods-based economy to a​ service-based economyB. The​ "new economy" is based on information technology.
C. Technological changeD. Quantity of capital per hour worked

Answer 1

Answer:

C) Technological change

D) Quantity of capital per hour worked

Explanation:

Technological change is the most important factor for economic growth. It is more important than capital per hour worked since technological change can increase productivity dramatically, e.g. smartphones and the internet changed the way the whole world's population lives and carries out business.