Which of the following is the most accurate description of the one third rule?
A) |
One third of real GDP per labor hour is attributable to the level of new capital per labor, holding technology constant. | |
B) |
A 1% increase in capital per labor hour results in a one third of 1% increase in real GDP per labor hour, holding technology constant. | |
C) |
A 1% increase in technology results in a one third of 1% increase in real GDP per labor hour, holding capital per labor hour constant. | | |