Using the growth accounting equation, if the growth rate of output is 5%, the growth of labor is 2% and the growth of capital is 2% then if α=0.50 then growth of technology can be estimated to be:

A. 4.25%.
B. 4.00%.
C. 3.00%.
D. 4.75%.

C. 3.00%.

Economics

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Opponents of the Taylor rule argue that it implies more advanced knowledge about the economy than is potentially feasible

a. True b. False

Economics

All of the following are part of an economic model except

A) assumptions. B) hypotheses. C) data. D) opinions.

Economics