onsider an imaginary economy with the following characterist

onsider an imaginary economy with the following characteristics: short-term labor force growth rate-1.2%; long erm labor force growth rate-1 096; short-term productivity growth rate 2.3%; long-term productivity growth rate Select one: o a. 3.9 percent o b. 3.7 percent C.3.5 percent o d. 3.3 percent

Solution

Economy\'s potential growth rate is occured in the long run. So here potential growth rate is 1+2.7=3.7%

Option b is correct.