Based on growth accounting, which of the following would not cause a reduction in output?

Question

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According to growth accounting, output is determined by the factors of production: labor, capital, and technology. Therefore, a reduction in employment (A), a reduction in the number of hours worked (C), and a reduction in the capital stock (D) would all cause a reduction in output. However, a reduction in interest rates (B) does not directly affect the factors of production and therefore would not cause a reduction in output.

Based on Growth Accounting, Which of the Following Would Not