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A Country's Labor Force Grows 1

Question 14

Multiple Choice

A country's labor force grows 1.2 percent and its capital stock grows 3 percent.Assume that labor share of output is 0.25.If the economy grows 4.55 percent,how much does total factor productivity grow?


A) 0.5 percent
B) 1 percent
C) 1.5 percent
D) 2 percent

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