Author Question: Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the ... (Read 121 times)

Diane · **on:** Jun 30, 2018

Assume that the economy grows by 3 percent, total factor productivity grows by 2 percent, and the labor force grows at 2 percent. If labor contributes 40 percent to real GDP, then the stock of capital must have risen by 0.33 percent.
a. True
b. False
Indicate whether the statement is true or false

Question 2

Which of the following is not one variable in the equation of exchange?
a. Real output.
b. The interest rate.
c. The money supply.
d. The price level.