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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Definitions:

Posterior Side

The back or rear part of the body or an object, opposite of anterior.

Agonist

A substance that binds to a receptor and activates it, often mimicking the action of a naturally occurring substance.

Antagonist

A substance that impedes or counteracts the action of another, especially a muscle that opposes the action of another muscle.

Synaptic Knob

The part of a neuron that releases neurotransmitters to transmit signals to another neuron or muscle cell.