Module 6.2: Growth Accounting and Influencing Factors

Question 1

growth accounting relation

Answer 1

Question 2

growth rate in potential GDP =

Answer 2

= long-term growth rate of technology + α (long-term growth rate of capital) + (1 − α) (long-term growth rate of labor)
or
= long-term growth rate of labor force + long-term growth rate in labor productivity