Final answer:
To calculate the growth in output using the growth accounting formula, you need information about the growth rates of various inputs in the production function. The growth accounting formula is based on the idea that economic growth can be attributed to growth in physical capital, human capital, and technology. Given the production function, you can calculate the growth in output by taking into account the growth rates of the labor force, the effectiveness of labor, and capital depreciation.
Step-by-step explanation:
To calculate the growth in output using the growth accounting formula, you need information about the growth rates of various inputs in the production function. The growth accounting formula is based on the idea that economic growth can be attributed to growth in physical capital, human capital, and technology. Given the production function, you can calculate the growth in output by taking into account the growth rates of the labor force, the effectiveness of labor, and capital depreciation.
For example, let's say the growth rate of the labor force is 5% per year, the growth rate of the effectiveness of labor is 1% per year, and the growth rate of capital depreciation is 2% per year. You can plug these growth rates into the growth accounting formula to calculate the growth in output.It's important to note that the growth accounting formula provides an estimate of the contribution of each input to output growth, but it does not capture all factors that contribute to economic growth. Other factors, such as changes in institutions and market conditions, can also play a role in economic growth.