Question

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

Answer 1

The correct answer is option B.

Step-by-step explanation:

Economic growth can be defined as an increase in the demand for goods and services over a period of time. It can be measured in both real as well as nominal terms.

Generally, an increase in the GDP or GNP indicates economic growth.

An increase in physical capital, human capital, labor force or technology contributes to economic growth.

An increase in these factors increases the income which further causes the total spending on goods and services in the economy to increase. This consequently causes the GDP to increase and thus contributes to economic growth.