Using the Growth Accounting Equation, If the Growth Rate of Technology

question 55

Multiple Choice

Using the growth accounting equation, if the growth rate of technology is 3 percent, the growth rate of labor is 2 percent, the growth of capital is 1 percent, and α = 0.75, then the growth rate of output can be estimated to be:

• A) 4.25 percent.
• B) 4 percent.
• C) 6 percent.
• D) 4.75 percent.

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Definitions:

Richard Rahe

A psychologist known for his research on stress and its effects on health, including the development of the Holmes and Rahe stress scale.

Faked Illness

Deliberate fabrication or exaggeration of symptoms for various motives, such as to gain attention, financial benefits, or avoid responsibilities.

Sick Role

A sociological concept regarding the social aspects of becoming ill and the privileges and obligations that come with it.

Feigning Illness

The act of pretending to be affected by a medical condition or symptoms of illness, often for gaining sympathy, avoiding duty, or other personal benefits.