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STatiana [176]
4 years ago
12

Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets

the stage for economic growth?
a. The Midwest suffers a drought.
b. The unemployment rate in Indiana rises from 5% to 6%.
c. Firms in Indiana spend less on real investment.
d. The percentage of Indiana residents with a college degree rises from 25% to 30%
Business
1 answer:
lidiya [134]4 years ago
7 0

Answer:

d. The percentage of Indiana residents with a college degree rises from 25% to 30%

Explanation:

Economic growth can be defined as an increase in the gross domestic product of a country over time.

Economic growth can be caused by increase in capital, technological advancement, education and labour.

The endogenous growth model posits that education can be a factor causing economic growth as it leads to diffusion of knowledge.

If the Midwest suffers a drought, production would be hampered and GDP would likely fall.

Rising unemployment is a sign of a fall in production.

If firms spend less on real investment, capital would fall and GDP would fall.

I hope my answer helps you

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<u>Explanation:</u>

<u>The following formula is used </u>

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Where:

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7 0
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hope this helps

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1. Some scholars have argued that the parole system should be abolished. Do you agree or
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