CFA Practice Question

There are 253 practice questions for this study session.

CFA Practice Question

Assume labor cost in total factor cost is 42% in country X. Its TFP growth rate is 3%, and its labor force growth rate is 1%. What is its steady state growth rate from the neoclassical model?

A. 6.17%.
B. 8.14%.
C. 7.14%.
Correct Answer: B

0.03/0.42 + 0.01 = 8.14%.

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