Suppose Indiana produces only steel and corn, with fixed amounts of land, labor, and capital resources. Which scenario best sets the stage for economic growth?
a. The Midwest suffers a drought.
b. The unemployment rate in Indiana rises from 5% to 6%.
c. Firms in Indiana spend less on real investment.
d. The percentage of Indiana residents with a college degree rises from 25% to 30%

d. The percentage of Indiana residents with a college degree rises from 25% to 30%

Explanation:

Economic growth can be defined as an increase in the gross domestic product of a country over time.

Economic growth can be caused by increase in capital, technological advancement, education and labour.

The endogenous growth model posits that education can be a factor causing economic growth as it leads to diffusion of knowledge.

If the Midwest suffers a drought, production would be hampered and GDP would likely fall.

Rising unemployment is a sign of a fall in production.

If firms spend less on real investment, capital would fall and GDP would fall.

I hope my answer helps you

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