Consider the following statement, made by a leading economic commentator about Australia.

Where once our economic growth was determined solely by the number of our machines, today it is determined by our ability to generate new ideas and develop new ways of producing output.

Using the growth accounting equation in part (i) explain the main contributing factor(s) of recent growth in Australia.

Equation (i):

rk wl Y = A+ + i Af(k.1) Af(k,1)