Question

Suppose the growth rate of GDP in the United States is 4.2 percent. If 2.9 percent and 1.3 percent of GDP growth are? due, respectively, to capital and labor? growth, the amount resulting from technological progress is

Answer 1

zero percent

Explanation:

Given data in the problem:

The growth rate of GDP in the United States = 4.2 percent

The growth of GDP due to the capital = 2.9 percent

The growth of GDP due to the labor = 1.3 percent

now, the contribution of the capital and labor in the growth of GDP = 2.9 percent + 1.3 percent = 4.2 percent

Now, the contribution from labor and the capital sums up the total growth rate of the GDP of the united States.

Hence, the growth rate from the technical progress is zero percent