According to Solow's growth accounting formula, the growth rate of capital per hour of work is multiplied by one-third. This means that
A) for every 1 percent increase in capital per hour of work, GDP per hour of work will increase by one-third of a percent.
B) for every 1 percent increase in capital per hour of work, GDP per hour of work will increase by 3 percent.
C) for every 1 percent increase in GDP per hour of work, capital per hour of work will increase by one-third of a percent.
D) the value of GDP is one-third the value of the capital stock.
E) GDP is three times as large as the capital stock.
Correct Answer:
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