What factors increase potential GDP? Include a definition of potential GDP in your answer

What will be an ideal response?

Potential GDP is the level of GDP attained when all firms are producing at capacity. Growth in potential GDP is determined by growth in the labor force and the capital stock and by technological change. Capital investments accompany growth in the labor force, encouraging technological progress and increasing potential GDP.

Economics

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Why does depreciation decrease the stock of capital?

What will be an ideal response?

Economics

The true burden of a payroll tax has nothing to do with the percentage of the tax that employers are required to pay

a. True b. False Indicate whether the statement is true or false

Economics