Economic growth is the sum of the growth rate of total factor productivity and the growth rate of resources.

Question

Quizplus · Accepted Answer

Economic growth is commonly measured as the percentage change in real gross domestic product (GDP) from one year to the next. However, this growth can come from two sources: growth in total factor productivity (TFP) and growth in the quantity or quality of resources (such as labor, capital, and technology). Therefore, the statement that economic growth is the sum of the growth rate of TFP and the growth rate of resources is true.

Economic Growth Is the Sum of the Growth Rate of Total