Standards of living in the long run have been improved by:
A)investment in physical capital.
B)investment in human capital.
C)higher inflation.
D)lower nominal interest rates.
E)a and b

Question

Quizplus · Accepted Answer

Investment in physical capital (such as machinery, technology, and infrastructure) helps to increase productivity and efficiency, leading to higher economic growth and standards of living. Investment in human capital (such as education and training) helps to increase labor productivity and skills, leading to higher wages and standards of living. Higher inflation reduces purchasing power and lowers standards of living, while lower nominal interest rates can promote investment and economic growth in the short run but may lead to inflation and lower standards of living in the long run.

Standards of Living in the Long Run Have Been Improved