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Consider a country that experienced a 10% growth rate of GDP PPP over the last 10 years. Let us say that, over the same period,
Consider a country that experienced a 10% growth rate of GDP PPP over the last 10 years. Let us say that, over the same period, the growth rate of aggregate capital (K) was 6%, the growth rate of aggregate labour (L) was 3% and the capital-output elasticity () was 2/3.True or False?Using basic growth accounting, productivity growth accounts for half of the country's total growth over thisperiod.
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