Over the business cycle, factors such as the quantity of capital, human capital and technology
A) change drastically, fluctuating more than the quantity of labour employed.
B) grow but do not fluctuate as much as the quantity of labour employed.
C) do not grow and are therefore not the source of economic growth.
D) fluctuate about the same amount as the quantity of labour employed.
E) change randomly, sometimes growing, sometimes falling.

Question

Quizplus · Accepted Answer

Factors such as the quantity of capital, human capital, and technology tend to grow over time and do not fluctuate as much as the quantity of labor employed. These factors are more stable and contribute to long-term economic growth, whereas the quantity of labor can change more rapidly in response to economic conditions.

Over the Business Cycle, Factors Such as the Quantity of Capital