Using the growth accounting equation, if the growth rate of technology is 3%, the growth of labor is 2% and the growth of capital is 1% then if ?=0.75 then growth of output can be estimated to be:
A. 4.75%.
B. 4.00%.
C. 4.25%.
D. 6.00%.
Answer: C
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The new growth theory
A) corrects for poor estimates of population growth. B) applies to only very poor, less-developed nations. C) eliminates technological advances from the growth picture. D) asserts that economic growth can be rapid but can only persist for a limited period of time. E) explains the source of technological advances.
Chain-weighted GDP deflator inflation differs from GDP deflation inflation because:
a. it uses different goods in its calculation. b. it uses two different base years to get the quantities used to calculate the index. c. it uses a constant set of prices every year. d. it uses two different base years to get the prices used to calculate the index.
Monopolies are always large firms with great economies of scale
a. True b. False Indicate whether the statement is true or false
If the government uses stabilization policies to reduce inflation, the economy may have to suffer
a. higher rates of real GDP growth. b. higher rates of unemployment. c. lower rates of unemployment. d. higher rates of price level growth.