Which of the following might be strong drivers of TFP? research/development in innovation capital accumulation government...

Which of the following might be strong drivers of TFP?

research/development in innovation

capital accumulation

government regulations and institutions high saving rates

both answer 1 & 3

Both answer 2 & 4

Expert Solution

it can be mentioned that total factor productivity is nothing but the ratio of the total aggregate output divided by the total aggregate inputs on the whole and in this regard it includes multi factor levels where the total factor productivity can be improved in such a way that research and innovation can get to bring best out of the inputs as a result of a productivity of individual input can increase and this can get to to increase the best productivity of the individual inputs as a result of which the total factor productivity increases. there is high amount of capital accumulation the productivity would remain same and the total factor productivity would also remain same and their hai government restrictions in high saving rates there can be obstruction to the effective usage of inputs as a result of which the total factor productivity can be less than that of expected

Therefore (a) research/development in innovation is the answer to this question

Rahul Sunny answered 5 months ago

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