If the growth rate of technology is 3 percent over a given period of time and there has been no change in the amount of capital per hour worked,then,based on Solow's growth accounting formula,the growth rate of real GDP per hour of work will be

Question

Quizplus · Accepted Answer

According to Solow's growth accounting formula, the growth rate of real GDP per hour of work can be expressed as the sum of the growth rate of technology and the growth rate of capital per hour worked. Since there has been no change in the amount of capital per hour worked, the growth rate of real GDP per hour of work will be equal to the growth rate of technology, which is 3 percent. Therefore, the correct answer is D.

If the Growth Rate of Technology Is 3 Percent Over