Suppose That Capital Per Hour of Labor Increases by 18

question 52

Multiple Choice

Suppose that capital per hour of labor increases by 18 percent while real GDP per hour of labor increases by 10 percent. What is the contribution to the increase in real GDP per hour of labor from changing technology?

• A) It increased real GDP per hour of labor by 3.33 percent.
• B) It increased real GDP per hour of labor by 4 percent.
• C) It increased real GDP per hour of labor by 12 percent.
• D) It increased real GDP per hour of labor by 18 percent.

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Definitions:

Variables

Elements, features, or factors that are likely to vary or change within the context of a scientific study or experiment.

Correlation Coefficient

A statistical measure that calculates the strength of the relationship between the relative movements of two variables. The values range between -1.0 and 1.0.

Calculation Error

A mistake made during the process of calculating, which can result in an incorrect outcome or answer.

Variables

Elements, features, or factors that can change and affect the outcome of scientific experiments or research studies.