In Techland,from 1980 to 2010,holding technology and human capital fixed,increasing physical capital per worker from $25 000 to $100 000 would have led to a doubling of real GDP per worker,from $40 000 to $80 000.However,not only did physical capital per worker increase from $25 000 to $100 000,but also technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40 000 to $320 000.What share of the annual growth rate of real GDP per capita was attributable to higher total factor productivity?

Question

Quizplus · Accepted Answer

The Answer of In Techland,from 1980 to 2010,holding technology and human capital fixed,increasing physical capital per worker from $25 000 to $100 000 would have led to a doubling of real GDP per worker,from $40 000 to $80 000.However,not only did physical capital per worker increase from $25 000 to $100 000,but also technological progress shifted the productivity curve upward so that real GDP per worker actually increased from $40 000 to $320 000.What share of the annual growth rate of real GDP per capita was attributable to higher total factor productivity?

In Techland,from 1980 to 2010,holding Technology and Human Capital Fixed,increasing