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The One- Third Rule States That, Holding Technology Constant, for Every

Question 221

Multiple Choice

The one- third rule states that, holding technology constant, for every 1 percent increase in


A) hours worked, real GDP will increase by 0.33 percent.
B) capital per hour of labor, real GDP per hour of labor will increase by 0.33 percent.
C) real wages, hours of work increase by 0.33 percent.
D) real wages, hours of work decrease by 0.33 percent.

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