Research suggests that the relatively higher rate of growth of output per capita between in China between 1995 and 2007 was the result of which of the following?
A)an increase in the rate of technological progress
B)an increase in K / NA
C)an increase in the rate of growth of N
D)an increase in the saving rate
E)both A and D

Question

Quizplus · Accepted Answer

Research suggests that the higher rate of growth of output per capita in China between 1995 and 2007 was due to both an increase in the rate of technological progress (option A) and an increase in the saving rate (option D). These two factors contributed to an increase in capital accumulation (K) which led to an increase in output per capita (Y/L = K/L * Y/K) as per the Cobb-Douglas production function. The other options, an increase in K/NA (option B) and an increase in the rate of growth of N (option C), do not fully explain the observed increase in output per capita.

Research Suggests That the Relatively Higher Rate of Growth of Output