Suppose that growth in output that can be attributed to growth in labor and capital is 3%. If output grows at a rate of 3%, it must be the case that:

Name: Suppose that growth in output that can be attributed to growth in labor and capital is 3%. If output grows at a rate of 3%, it must be the case that:
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Question

Quizplus · Accepted Answer

If output growth is entirely due to growth in labor and capital, and there is no additional growth, it implies that there is no increase in productivity, meaning labor is not becoming more productive.

Suppose That Growth in Output That Can Be Attributed to Growth