CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Which parameter does NOT change the level of output per worker?
A. saving rate.
B. growth rate of TFP.
C. labor force growth rate.
Explanation: Saving rate, labor force growth rate and the depreciation rate change the level of output per worker, but do not permanently change the growth rate of output per worker.

Note that labor force growth rate can permanently change growth rate of output, but not growth rate of output per worker.

User Contributed Comments 2

User Comment
daverco This is stated nearly literally in the first sentence below exhibit 15.
ikolatunji TFP should be able to change the level, why not? With TFP, an economy can produce more (output per person- which implies growth rate and level) even with existing resources
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