Use the Graph to Answer the Following Questions

question 8

Essay

Use the graph to answer the following questions. (A)Suppose that between two given years,growth in capital per hour of work and growth in technology were both positive.Pick two points on the graph that represent such a scenario.
(B)Suppose that between two given years,growth in capital per hour of work was zero,and growth in technology was positive.Pick two points on the graph that represent such a scenario.
(C)Suppose that between two given years,growth in capital per hour of work was positive,and growth in technology was negative.Pick two points on the graph that represent such a scenario.What happened to productivity in this particular case?

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Definitions:

Worksheet

A multiple-column form that may be used in making adjusting entries and in preparing financial statements.

Statement of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives.

Indirect Method

A way of reporting cash flows from operating activities by starting with net income and adjusting for non-cash transactions.

Retained Earnings

The portion of net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.