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 growth does it contribute to the growth in physical capital per worker?

Question

Quizplus · Accepted Answer

Physical capital per worker contributes 0.3*5% = 1.5 percentage points to the overall growth rate. Of this, 0.4*4% = 1.2 percentage points come from the growth in physical capital per worker. Therefore, the answer is C) 1.2 percentage points.

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