CFA Practice Question

There are 539 practice questions for this study session.

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.

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