Using the growth accounting equation, if the growth rate of output is 5 percent, the growth rate of labor is 4 percent, the growth rate of technology is 3 percent, and α = 0.8, then the growth rate of capital can be estimated to be:
A) 4.75 percent.
B) 5 percent.
C) 5.5 percent.
D) 6 percent.
Correct Answer:
Verified
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