If the production function per labour is Y/L = A x (K/L)^1/3 then the growth accounting equation is:

Question

Quizplus · Accepted Answer

The growth accounting equation relates the growth rate of output per worker (Y/L) to the growth rate of technology (A) and the growth rate of capital per worker (K/L). Given the production function Y/L = A x (K/L)^(1/3), the growth in Y/L is the sum of the growth in A and one-third of the growth in K/L, as indicated by the exponent on K/L in the production function. This matches choice A.

If the Production Function Per Labour Is Y/L = a X