Growth accounting explains
A)how economic decisions control the accumulation of capital
B)how the current savings rate affects the stock of capital in the future
C)what part of growth in total output is due to growth in different factors of production
D)all of the above
E)only A and B

Question

Quizplus · Accepted Answer

Growth accounting measures what factors contribute to economic growth, such as labor, capital, and technological advances. Therefore, it calculates the contribution of each factor in the growth of total output, rather than controlling the accumulation of capital or the effect of savings rate on capital.

Growth Accounting Explains