The US economy is described by the following production function: Y = AK (Lh)(1 ), where A is total factor productivity, K is total capital, Lis the size of labor force, and h is the level of schooling. Analyze output growth in the US economy based on the following data and consider statements (i)-(v):

Growth(%)	A	K	L		h
1948-1973	1.8	4.1	1.4	1/3	2.2
1973-2014	1,75	3.8	1.75	1/3	2.7

(i) Themostimportantcomponentofoutputgrowthbetween1948and1973wastotalfactor productivity.

2. (ii) The growth of the labor force has contributed the least to output growth between 1948 and 1973.

3. (iii) Themostimportantcomponentofoutputgrowthbetween1973and2014wastheincrease in schooling.

4. (iv) The growth of the capital stock has least contributed to output growth between 1973 and 2014.

5. (v) The output growth rate between 1948 and 1973 was higher than the output growth rate between 1973 and 2014.

1. (a) Only statements (i), (ii) and (iii) are true.

2. (b) Only statements (i) and (v) are true.

3. (c) All statements except (iv) are true.

4. (d) Only statements (ii) and (iv) are true.

5. (e) Only statements (iv) and (v) are true.