Which of the following is a demand factor in economic growth?
A) more human and natural resources
B) technological progress and innovation
C) an increase in the economy's stock of capital goods
D) an increase in total spending in the economy

Question

Quizplus · Accepted Answer

An increase in total spending in the economy, also known as aggregate demand, is a demand factor that stimulates economic growth. When consumers and businesses spend more money, it creates a multiplier effect where the increase in demand leads to an increase in production, which in turn leads to an increase in jobs and income, further increasing demand. This cycle of spending and production is essential for economic growth. While A, B, and C are all important factors for economic growth, they are supply factors that contribute to the economy's productive capacity, rather than demand factors that drive growth.

Which of the Following Is a Demand Factor in Economic