Which of the following helps determine the growth rate of potential GDP?
I. capital accumulation
II. technology advances
III. the money supply
A) I and II
B) I, II and III
C) I
D) I and III

Question

Quizplus · Accepted Answer

The growth rate of potential GDP is determined by factors such as capital accumulation and technology advances, which are represented by options I and II. The money supply, represented by option III, does not have a significant impact on the growth rate of potential GDP. Therefore, options A and D which include I and II are the best choices, with option A being the most appropriate as it includes only the relevant factors.

Which of the Following Helps Determine the Growth Rate of Potential