Question

Neoclassical economists believe that economic growth can be achieved through the increase in the potential level of GDP. This can happen by raising productivity through :_______. A. investment in human capital B. investment in physical capital C. investment in improvements in technology D. All of the above.

Answer 1

The correct answer is the option D: All of the above.

Step-by-step explanation:

To begin with, the neoclassical theory of economic growth is considered to be one of the most well known and important theory in the economics sciences due to the fact that it establishes how the economy can grow and more important what are the key factors that need to be affect in order to that growth happens. Moreover, it states that a steady growth rate can be achieved only by the combination of three major factors that are: the labor, the capital and the technology. That is why that with the purpose to increase the GDP there will be a need in rise the productivity through an investment in human capital, in physical capital and in technology as well.