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

question 55

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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:

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Definitions:

Free-enterprise Economy

An economic system in which private business operates in competition and largely free of state control, with the right to buy, sell, and conduct business.

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