The purpose of growth accounting is to determine

Question

Quizplus · Accepted Answer

Growth accounting is used to determine the sources of economic growth, and it involves decomposing the growth of GDP into the contributions of increases in capital, labor, and technology. Option A is too narrow in scope, as growth accounting is not only concerned with the growth of the capital stock. Option C is incorrect, as growth accounting is not concerned with measuring depreciation, but rather with analyzing the factors that contribute to economic growth. Option D is also incorrect, as growth accounting is concerned with understanding the sources of GDP growth, not just the rate at which it grows.

The Purpose of Growth Accounting Is to Determine