Growth accounting divides the growth of labor productivity into two components, which are

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Growth accounting divides the growth of labor productivity into two components: growth in capital per hour of labor and technological change. These two components together determine the rate of growth of labor productivity. Factors such as the labor/capital ratio and the price of labor relative to capital may have an impact on these components, but they are not themselves the components that growth accounting aims to identify. Choice A is therefore incorrect. While real GDP per person and the amount of capital per worker may be useful measures of economic growth and development, they are not the two components of growth accounting, so choice C is incorrect. Finally, real GDP per hour of labor and real GDP per dollar of capital may be useful measures of productivity and efficiency, but they do not map directly onto the two components identified by growth accounting, so choice D is also incorrect.

Growth Accounting Divides the Growth of Labor Productivity into Two