Question #28
Reading: Reading 6 Economic Growth
PDF File: Reading 6 Economic Growth.pdf
Page: 13
Status: Unattempted
Correct Answer: B
Question
An increase in growth rate of potential GDP in developed countries is most likely to be driven by:
Answer Choices:
A. technological progress
B. both capital deepening and technological progress
C. capital deepening
Explanation
Improvement in potential GDP growth in developed countries is largely driven by
technological progress. Developing countries have the potential to grow through both
capital deepening and technological progress.