Suppose physical capital per worker increased to $60,000 between 1990 and 2000 and output per worker increased by $45,000 over the same time period. what percentage of productivity growth can be attributed to growth in total factor productivity? round your answer to two places after the decimal

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Business

Lewis Dominguez

14 November, 10:04

Suppose physical capital per worker increased to $60,000 between 1990 and 2000 and output per worker increased by $45,000 over the same time period. what percentage of productivity growth can be attributed to growth in total factor productivity? round your answer to two places after the decimal

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Leilani White · Answer 1

The initial capital per worker is $30,000. The capital per worker rises to $60,000. The change in capital per worker is $30,000 (60,000 - 30,000). The change in output per worker is $45,000. The productivity growth attributed to growth in total factor productivity is as follows:Growth Rate = (Change in Input) / (Change in Output) x 100=30,000/45,000 x 100=66.67%Answer is 66.67%