Which of the following is the formula for the growth rate of multifactor productivity written so that the first term in the equation represents the growth rate of labor productivity?
A)y + bk + (1 - b)n
B)y = a + bk + (1 - B)n
C)a = y - bk - (1 - b)n
D)a = (y - n)- b(k - n)

Question

Quizplus · Accepted Answer

The correct formula that represents the growth rate of multifactor productivity (a) with the first term representing the growth rate of labor productivity (y - n) is D: a = (y - n) - b(k - n). This formula decomposes the growth rate of multifactor productivity into the portion attributable to labor productivity growth (y - n) and the contribution of capital deepening, adjusted for labor growth (b(k - n)).

Which of the Following Is the Formula for the Growth