Suppose That Capital Per Hour of Labor Has Increased by 9

question 276

Multiple Choice

Suppose that capital per hour of labor has increased by 9 percent. If real GDP per hour of labor has risen by 10 percent, the one- third rule states that, holding technology constant, capital per hour of labor accounts for

• A) 4 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 6 percent.
• B) 7 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 3 percent.
• C) 3 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 7 percent.
• D) 2 percent of the growth rate in real GDP per hour of labor, with technology accounting for the remaining 8 percent.

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