CFA Practice Question

There are 923 practice questions for this topic.

CFA Practice Question

The only way to sustain growth in potential GDP per capita is through ______.

A. population growth
B. capital deepening investment
C. technological change
Correct Answer: C

This is because of diminishing returns to capital. The growth-accounting equation also shows that improvements in technology are more important than capital in raising an economy's standard of living.

User Contributed Comments 0

You need to log in first to add your comment.