1)In the short run, successive additions to capital produce smaller and smaller increases in output. Which of the following statement(s) could explain why GDP nevertheless continues to rise in the long run?

A) Workers work harder.

B) Government policy encourages economic growth.

C) Economies benefit from economies of scale.

D) New capital equipment incorporates the latest technological developments.

2)Which of the following must occur to sustain economic growth in the long run?

A) A higher saving rate

B) Capital accumulation

C) Technological progress

D) All of the above

3) Ceteris Paribus, which of the following will cause a reduction in output per worker in the long-run run?

A) Anincreaseinthenumberofworkers

B) Capital accumulation or technological progress

C) Capital accumulation

D) Expansionary monetary policy