For the years 1987-2005,output per person in the private sector grew 2.3 percent;capital intensity grew 0.9 percent;and total factor productivity grew 1.1 percent.What was the growth rate of labor composition?

Question

Quizplus · Accepted Answer

The growth rate of labor composition can be calculated using the formula:
Growth rate of labor composition = Output growth rate - Capital intensity growth rate - Total factor productivity growth rate
Plugging in the given values, we get:
Growth rate of labor composition = 2.3% - 0.9% - 1.1% = 0.3%
Therefore, the growth rate of labor composition was 0.3% for the years 1987-2005, which is closest to option C (0.4%).

For the Years 1987-2005,output Per Person in the Private Sector