Suppose That During the Last Year Growth in Output Due

question 32

Multiple Choice

Suppose that during the last year growth in output due to growth in labor and capital was 4%. If output grew at a rate of 6%, it must be the case that:

• A) technological progress increased by 2%.
• B) the ratio of capital to labor increased by 2%.
• C) capital grew faster than labor.
• D) labor grew faster than capital.

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