If capital per hour of work is growing at a rate of 3 percent and the government wants output per hour of work to grow at 3 percent,how high does the growth rate of technology have to be?

Question

Quizplus · Accepted Answer

The growth rate of output per hour of work is the sum of the growth rate of capital per hour of work and the growth rate of technology. If capital per hour is growing at 3 percent and the desired output per hour growth is 3 percent, the technology growth rate must be 0 percent.

If Capital Per Hour of Work Is Growing at a Rate