If the Combined Growth in Capital and Labor Is -1

question 6

Multiple Choice

If the combined growth in capital and labor is -1 (negative one) percent and total factor productivity grows by 1.5 percent, then output

• A) falls by 2.5 percent.
• B) rises by 0.5 percent.
• C) falls by 1.5 percent.
• D) rises by 2.5 percent.
• E) rises by 1 percent.

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Definitions:

Rare Virtues

Encompasses qualities or abilities that are uncommonly found within individuals or societies, often considered precious due to their scarcity.

Conscientious People

Individuals who are diligent, careful, thorough, responsible, and organized in their behavior or actions.

Answering Honestly

The act of providing truthful and accurate responses in a communication setting.

Creative Thinking

The process of thinking in new and original ways to solve problems or generate new ideas.