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Reading 14: Economic Growth- LOS d ~ Q5

Q5. Assume that real gross domestic product (GDP) per labor hour grew 7% over the past three years. Based on the one third rule, the amount of real GDP growth attributable to the change in new capital is 1.5%. Over this period, the contribution of technological change to real GDP growth and the growth rate in new capital is closest to:

          Technology contribution             Growth of new capital

 

A)       5.5%                             4.5%

B)       6.5%                             0.5%

C)       1.8%                             4.5%

 

 

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