For the years 2004-2005,output per person in the private sector grew 2.1 percent;capital intensity grew 0.3 percent;and labor composition grew 0.1 percent.What was the growth rate of total factor productivity?

Question

Quizplus · Accepted Answer

Total factor productivity growth can be calculated by subtracting the growth rates of output per person, capital intensity, and labor composition from the overall output growth rate. 
Total factor productivity growth = Output growth rate - Capital intensity growth rate - Labor composition growth rate
= 2.1% - 0.3% - 0.1%
= 1.7%
Therefore, the correct answer is C) 1.7 percent.

For the Years 2004-2005,output Per Person in the Private Sector