Suppose that capital per hour of labor has increased by 9 percent. If real GDP per hour of labor has risen by 10 percent, the one- third rule states that, holding technology constant, capital per hour of labor accounts for
A) 4 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 6 percent.
B) 7 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 3 percent.
C) 3 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 7 percent.
D) 2 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 8 percent.
Correct Answer:
Verified
Q248: Assume that capital per hour of labor
Q249: Productivity growth
A) was high in the 1960s,
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