Suppose that capital per hour of work grows by 3 percent


A) Suppose that capital per hour of work grows by 3 percent and technology grows by 1 percent over a one year interval. What is the growth rate of real GDP per hour of work? Show the formula and all work.

B) To understand what causes productivity growth, what should an economist focus on, discuss.

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Business Economics: Suppose that capital per hour of work grows by 3 percent
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