The Growth Equation Is a Relationship Indicating That the Rate

The growth equation is a relationship indicating that the rate of growth in a country's aggregate real income is equal to the sum of three components: (1) the rate of growth of productivity of labor and capital; (2) the contribution to aggregate real income of labor resources multiplied by the rate of growth of labor resources; and (3) the contribution to aggregate real income of capital resources multiplied by the rate of growth of capital resources.