When the growth in total factor productivity is zero, the growth in real GDP is
A) always equal to zero.
B) always negative.
C) positive if resource growth is greater than zero.
D) positive if the stock of capital and labor is depleting.
E) always positive.

Question

Quizplus · Accepted Answer

When total factor productivity growth is zero, real GDP can still grow if there is growth in the inputs used in production, such as labor and capital. If the quantity of resources (like labor and capital) increases, it can lead to positive growth in real GDP even without improvements in productivity.

When the Growth in Total Factor Productivity Is Zero, the Growth