If productivity growth equals 3.0 percent,the contribution from capital growth 1.2 percent and the contribution from labor growth 2.0 percent,then output growth must equal ________.
A)2.2 percent
B)4.2 percent
C)6.2 percent
D)7.2 percent

Question

Quizplus · Accepted Answer

Output growth is the sum of productivity growth, capital growth, and labor growth. Therefore, output growth equals 3.0 + 1.2 + 2.0 = 6.2 percent. Therefore, the correct option is C.

If Productivity Growth Equals 3