Economic growth occurs because ?
Correct answer: D. All of the above
- A. labor forces increase
- B. capital stocks increase
- C. new inventions increase productivity
- D. All of the above
Explanation
Growth can result from a larger labour force, increased capital stock, or higher productivity from inventions and improved technology. Since all three expand an economy's productive capacity, the combined option is correct.
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The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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