Question

Consider the following relationship: Y = f(K, L, A). To measure technological progress, we observe:

a) Capital (K)
b) Labor (L)
c) Total factor productivity (A)
d) Economic growth

Answer 1

In economics, the relationship between factors of production and economic growth is often represented by the function Y = f(K, L, A), where Y represents economic output, K represents physical capital, L represents labor, and A represents total factor productivity.

Step-by-step explanation:

In economics, the relationship between factors of production and economic growth is often represented by the function Y = f(K, L, A), where Y represents economic output, K represents physical capital, L represents labor, and A represents total factor productivity. To measure technological progress, economists observe the changes in physical capital, labor, and total factor productivity over time. Technological progress is often considered as the residual growth that cannot be explained by changes in physical capital and labor inputs.