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Refer to the Following Table When Answering
Table

Question 70

Multiple Choice

Refer to the following table when answering
Table 6.1: Growth Accounting
 Growth (%)  1948201119481973197319951995200720072011K/L0.90.90.71.11.1 Labor Comp 0.20.20.30.20.4 TFP 1.42.20.51.50.4\begin{array} { l | c c c c c } \hline \text { Growth (\%) } & 1948 - 2011 & 1948 - 1973 & 1973 - 1995 & 1995 - 2007 & 2007 - 2011 \\\hline K / L & 0.9 & 0.9 & 0.7 & 1.1 & 1.1 \\\text { Labor Comp } & 0.2 & 0.2 & 0.3 & 0.2 & 0.4 \\\text { TFP } & 1.4 & 2.2 & 0.5 & 1.5 & 0.4 \\\hline\end{array}
-Consider the growth accounting data in Table 6.1. If the production function is given by Yt=AtKt1/4Lt3/4Y _ { t } = A _ { t } K _ { t } ^ { 1 / 4 } L _ { t } ^ { 3 / 4 } , the growth rate of per capita GDP for 1948-1973 is:


A) -1.7 percent
B) 0.8 percent
C) 1.1 percent
D) 0.0 percent
E) 2.6 percent

Correct Answer:

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