provides a way for economists to calculate the impact of different determinants of economic growth.

Question

Quizplus · Accepted Answer

Growth accounting is a way for economists to calculate the impact of different determinants of economic growth, such as changes in labor productivity, human capital, and technology. It helps to identify which factors are driving economic growth and can inform policy decisions aimed at promoting growth. Labor productivity (B) and nominal GDP (C) are important factors in growth accounting, but they are not the method itself. Growth theory (D) is a broader field of study that examines the underlying mechanisms of economic growth.

Provides a Way for Economists to Calculate the Impact of Different