An analyst gathers the following information about a country's economy:
- Annual growth in capital: 3.25%
- Annual growth in labor: –1.70%
- Annual growth in total factor productivity: 1.25%
- Labor share of output: 53.00%
Based on the growth accounting equation, the potential annual GDP growth of the economy is **closest to**: | Chartered Financial Analyst Level 2 Quiz - LeetQuiz
Chartered Financial Analyst Level 2
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An analyst gathers the following information about a country's economy:
Annual growth in capital: 3.25%
Annual growth in labor: –1.70%
Annual growth in total factor productivity: 1.25%
Labor share of output: 53.00%
Based on the growth accounting equation, the potential annual GDP growth of the economy is closest to: