According to Estimates of the Aggregate Production Function,each 1% Increase

question 206

True/False

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

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Definitions:

Labor Market

An economic marketplace that matches potential employers with employees based on their skills, job requirements, and wage expectations.

Wage

The amount of money that is paid to an employee by an employer, typically in exchange for the employee's labor, calculated on an hourly, daily, or piecework basis.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, holding all other factors constant.

Profit

The financial gain achieved when the revenue earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.