Real GDP grows when
I. the quantities of the factors of production grow.
II. persistent advances in technology make factors of production increasingly productive.
III. human capital grows.
A) only I
B) both I and III
C) only II
D) I, II, and III
Question 2
The nation's structural unemployment will increase when
A) bad economic policies send the economy into a recession.
B) there is influx into the labor market of new college graduates.
C) there is an increase in post-Christmas layoffs of workers.
D) an increase in textile imports displaces older textile workers who do not have the skills necessary to find new jobs.
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