If the growth rate of resources is zero and real output is growing at 4 percent, then _____.
A)the stock of capital has fallen by 4 percent
B)economic growth has fallen by 4 percent
C)total factor productivity has risen by 4 percent
D)the stock of labor has fallen by 4 percent
E)the percentage share of real GDP received by capital has fallen by 4 percent

Question

Quizplus · Accepted Answer

When real output grows without an increase in resources, it indicates an improvement in total factor productivity, which means more output is being produced with the same amount of resources.

If the Growth Rate of Resources Is Zero and Real