Refer to the above diagram. A shift in the production possibilities curve from AB to CD is most likely due to:

A. an increase in the spending of business and consumers.
B. an increase in government purchase of the economy's output.
C. an increase in the quantity and quality of labor resources.
D. the use of the economy's resources in an efficient way.

Answer: C

Economics

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The growth rate of real GDP equals

A) the growth rate of hours worked plus the growth rate of labor productivity. B) the growth rate of hours worked minus the growth rate of labor productivity. C) the growth rate of hours worked multiplied by the growth rate of labor productivity. D) the growth rate of hours worked divided by the growth rate of labor productivity.

Economics