According to the growth-accounting formula, productivity growth
A)can be a result of an upward shift and a rightward movement along the productivity curve.
B)can only be a result of a shift of the productivity curve.
C)can only be a result of a movement along the productivity curve.
D)only occurs when an upward shift of the productivity curve is offset by a leftward movement of that curve.
E)cannot be described by the productivity curve.

Question

Quizplus · Accepted Answer

Productivity growth can be a result of an upward shift and a rightward movement along the productivity curve because the upward shift represents an increase in the efficiency of production, while the rightward movement represents an increase in the quantity of output produced.

According to the Growth-Accounting Formula, Productivity Growth