Use the data in the exhibit to complete the two tasks below.

a.Compute and report the value of growth in total factor productivity ((A_t - A_{t - 1})/A_{t - 1}) in each period from periods 2 through 5. Assume that the value of A is 1.000 in period 1. Report the value of A in each period.
b.Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanation.

Question

Use the data in the exhibit to complete the two tasks below.

a.Compute and report the value of growth in total factor productivity ((A_t - A_{t - 1})/A_{t - 1}) in each period from periods 2 through 5. Assume that the value of A is 1.000 in period 1. Report the value of A in each period.
b.Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanation.

Quizplus · Accepted Answer

The Answer of Use the data in the exhibit to complete the two tasks below. a.Compute and report the value of growth in total factor productivity ((A_t - A_{t - 1})/A_{t - 1}) in each period from periods 2 through 5. Assume that the value of A is 1.000 in period 1. Report the value of A in each period. b.Does the value of A rise in each period? If it declines, do you think this decline is because technological progress works backward? If so, explain your answer. If not, provide another explanation.

Use the Data in the Exhibit to Complete the Two