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stich3 [128]
3 years ago
11

As an economist working at the International Monetary Fund, you are given the following data for Burundi: observed per capita GD

P, relative to the United States, is 0.01; predicted per capita GDP, given by , is 0.18. What is total factor productivity
Business
1 answer:
aalyn [17]3 years ago
6 0

Answer: 0.056

Explanation:

Total factor productivity is the ratio of the aggregate that is, the total output to the aggregate inputs. Total factor productivity is used to measure economic efficiency of a country.

From the question, we are informed that Burundi's observed per capita GDP, relative to the United States, is 0.01 and the predicted per capita GDP is 0.18. Then, the total factor productivity will be:

= 0.01/0.18

= 0.056

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