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Augmenting the Regression Equation Derived from the Production Function, GY

Question 14

Multiple Choice

Augmenting the regression equation derived from the production function, gY = a
+ b1 gK + b2 gL, by adding other possible explanatory variables in order to create the regression equation gY = a + b1 gK + b2 gL + b3Z1 + ... + bn+2Zn, the coefficients of the Z variables tell us the effect of the Z variables on:


A) the growth of the factors of production.
B) the levels of the Z variables.
C) the level of technology.
D) the rate of total factor productivity growth.

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