Chapter 7R, Problem 17MCQ

To determine

To find:

Way in which government can promote long run economic growth.

Explanation of Solution

Simply said, innovations, discoveries that lead to better goods and more effective manufacturing processes are what fuel economic growth.

The driving factor behind this process is human capital; a highly educated labor force boosts R&D returns and assures that discoveries are more quickly integrated into the economy's productive structure. In the end, greater knowledge leads to greater economic expansion.

Hence the correct option is E.