The Growth Accounting Formula Is Useful for Determining the Sources

question 79

Essay

The growth accounting formula is useful for determining the sources of productivity growth.
(A)Name the two sources of productivity growth,and write down the growth accounting formula.
(B)Explain why labor does not directly enter the formula.
(C)Suppose you were given the assignment of determining the sources of productivity growth for the past year.Explain briefly how you would do this in terms of the data you could expect to find.

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