Question

Empirical studies suggest thatA) technological advances account for about 40 percent of U.S. productivity growth.B) all U.S. economic growth from between 2001 and 2007 can be attributed to increases in the quantity of labor. C) achieving economies of scale is the most important factor in U.S. economic growth.D) labor productivity has declined throughout U.S. history.

Answer 1

Answer:

(A) technological advances account for about 40 percent of U.S. productivity growth

Explanation:

Three influential factors of growth are the labor force, technology, and capital, and our most important finding is that growth of technology is the highest influential among them and thus special attention should be given its improvement. The growth rate of GDP is at 2.07% as of 2015, but using the first order exponential model, it will then slow down to 1.38% by 2035. The findings were conclusive in that total production was made up of 57.5% technology, 28.8% labor, and 12.8% capital. Technology makes up the greatest fraction of total production and changes in labor and capital would not affect the growth rate as much as technology can.