Based on growth accounting, which of the following would not cause an increase in output?

Question

Quizplus · Accepted Answer

Growth accounting identifies the sources of economic growth. According to the Solow model (the most commonly used growth accounting model), output (Y) is determined by three factors: physical capital (K), labor (L), and technology (A). Therefore, an increase in capital (C) or labor (B and A) would cause an increase in output. Interest rates (D) do not directly affect any of these factors, so it would not cause an increase in output.

Based on Growth Accounting, Which of the Following Would Not