Small differences in annual growth rates of real GDP generate large differences in real GDP over time because of the:

A. diminishing returns to capital.
B. importance of average labor productivity.
C. limits of economic growth.
D. power of compound interest.

Answer: D

Economics

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When a tariff is imposed on a good, the ________ increases

A) domestic quantity purchased B) domestic quantity produced C) quantity imported D) quantity exported E) world price

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A(n) ________ in private expenditures as a result of a(n) ________ in government purchases is called crowding out

A) increase; increase B) decrease; decrease C) decrease; increase D) increase; decrease

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