The purpose of the growth accounting formula is to
A)explain why economies stop growing.
B)determine the role of government in affecting growth.
C)measure the rate at which GDP grows.
D)identify the limits to growth.
E)determine how much productivity growth is due to changes in the capital stock and how much is due to changes in technology.

Question

Quizplus · Accepted Answer

The growth accounting formula is used to determine how much productivity growth is due to changes in the capital stock and how much is due to changes in technology. It is a useful tool for understanding the sources of economic growth and for making policy decisions related to investment and innovation. The other choices may be related to economic growth, but they are not the purpose of the growth accounting formula.

The Purpose of the Growth Accounting Formula Is to