If the labour-income is 2/3 of national income, the basic growth accounting equation is:

Question

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The basic growth accounting equation, which breaks down the growth rate of an economy's total output into contributions from technological progress, labor, and capital, is given by ?Y/Y = ?A/A + α(?L/L) + (1-α)(?K/K), where α represents the share of labor income in national income. Given that labor income is 2/3 of national income, α = 2/3, making the correct equation ?Y/Y = ?A/A + (2/3 x ?L/L) + (1/3 x ?K/K).

If the Labour-Income Is 2/3 of National Income, the Basic