Multiple Choice
Suppose that growth in output that can be attributed to growth in labor and capital is 3%. If output grows at a rate of 5%, it must be the case that:
A) the economy is not spending enough on acquiring human capital.
B) growth in capital exceeds growth in labor.
C) both labor and capital are becoming more productive.
D) growth in labor exceeds growth in capital.
Correct Answer:
Verified
Correct Answer:
Verified
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