In the long run, the growth in real GDP is determined by
A)fiscal policy.
B)monetary policy.
C)both fiscal and monetary policy.
D)the growth of labor, capital, and productivity.

Question

Quizplus · Accepted Answer

In the long run, the growth in real GDP is determined by the growth of labor, capital, and productivity. Fiscal and monetary policies can affect short-term fluctuations in economic growth, but they do not impact the long-term potential output of an economy which is determined by the growth of labor, capital, and productivity.

In the Long Run, the Growth in Real GDP Is