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An Economy Is Growing at 5%,suppose Physical Capital Per Worker

Question 24

Multiple Choice

An economy is growing at 5%,suppose physical capital per worker grows at 4%,human capital per worker grows at 3% and assume that physical capital share of output is 0.3,how much does total factor productivity grow?


A) 0.7 percentage points
B) 1 percentage points
C) 1.2 percentage points
D) 1.7 percentage points

Correct Answer:

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