According to Robert Solow's One- Third Rule, If Both Capital

question 281

Multiple Choice

According to Robert Solow's one- third rule, if both capital per hour of labor and real GDP per hour of labor grow by 3 percent a year, then we can conclude that

• A) capital growth contributed one- third of one percent to GDP growth
• B) most of the growth in GDP per hour of labor was due to growth in capital per hour of labor.
• C) technological change contributed 2 percent to growth in GDP per hour of labor.
• D) the one- third rule has been violated.

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