Which of the Following Is a Reason Why the Coefficient

question 20

Multiple Choice

Which of the following is a reason why the coefficient corresponding to the growth rate of capital per hour of work is one-third in Solow's growth accounting formula?

• A)Capital income plus depreciation is approximately one-third of aggregate income.
• B)Capital income plus depreciation is approximately three times the amount of aggregate income.
• C)The amount of capital in use is approximately one-third of GDP.
• D)The amount of capital in use is approximately three times the level of GDP.
• E)Capital is one of the three factors of production.

---

Definitions:

Reimbursement

The act of compensating someone for an expense or loss, often by the original payer or a responsible third party.

Contractual Relationship

A legal bond created by the existence of a contract between parties, outlining specific duties and rights.

Recover

Refers to the process of getting back lost, stolen, or inaccessible data or assets.

Indemnification

The act of compensating for loss or damage, often seen in contracts where one party agrees to cover the losses of another.