Over the past year, productivity grew 1.8%, capital grew 2%, and labor grew 1%. If the elasticities of output with respect to capital and labor are 0.2 and 0.8, respectively, how much did output grow?
A. 1%
B. 2%
C. 3%
D. 4%
Answer: C
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If the inflation rate in an economy is 5 percent and the income earned by workers increases by 5 percent, then _____
a. nominal income declines and real income increases b. both nominal income and real income increase by 5 percent c. nominal income increases and real income declines d. both nominal income and real income decrease by 5 percent e. nominal income increases by 5 percent and real income is unchanged
The Board of Governors of the Federal Reserve System is the key decision maker for monetary policy.
a. true b. false
ATC is
A) TC/q. B) q/TC. C) AFC - AVC. D) ?TC - ?q.
If every time disposable income increases by 5 trillion, consumption increases by 4 billion and saving increases by 1 billion, the MPC and MPS are, respectively,
What will be an ideal response?