Quiz: The Growth Accounting Formula
Consider a country in which capital per hour of work from 1950 to 1973 grew by 3 percent per year and output per hour of work grew by about 3 percent per year. Suppose that from 1973 to 1991, capital per hour of work did not grow at all and output per hour of work grew by about 1 percent per year.
Note: As an example, to enter an answer of 5 percent into one of the following questions you would enter: 5
1)What was the growth rate (in percentage terms) of technology between 1950 and 1973?
2)What was the growth rate (in percentage terms) of technology between 1973 and 1991?
3)Which of the following is the most important cause of the slowdown in productivity after 1973?
the decrease in the growth rate of technology.
the decrease in the growth rate of capital per hour of work.
the decrease in both the growth rate of technology and of capital per hour of work.