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According to the Neoclassical analysis, increases and investments in physical and human capital per person and advances in technology (ref. section 26.1) are the building
According to the Neoclassical analysis, "increases and investments in physical and human capital per person and advances in technology" (ref. section 26.1) are the building blocks of economic growth (determined by positive GDP). (note: Neoclassical analysis view economic output as a derivative of a vertical aggregate supply curve (ref. PG. 637/figure 26.8). (d) Discuss the contrasting effects of investments in human capital and the evolving role of AI to trim the U.S. labor force in 4 - 5 yrs. Include one/two macro-economic reasons to explain the likely impact on income and investment sectors of GDP in 2023, 2024 - 2025. (ref. WSJ article dated 01-14-24 on sector growth (as a component of U.S. GDP)
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