According to Estimates of the Aggregate Production Function, Each 1

question 8

True/False

According to estimates of the aggregate production function, each 1% increase in physical capital, holding human capital and technology constant, raises labor productivity by 0.33%.

---

Definitions:

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are reported.

Income Taxes Payable

This liability account shows the amount of income taxes owed to the government but not yet paid by a company.

Cash Payments

Outflows of cash from a company to settle obligations, including the payment of goods, services, and debts.