Homework SourseFrances drop in output per capita relative to US output per
France\'s drop in output per capita relative to U.S. output per capita in the 1980s and 1990s was due to:
the slowdown in technology growth in France.
decreasing marginal returns to capital.
the steady decrease in the labor-population ratio in France.
All of the above.
| the slowdown in technology growth in France. | ||
| decreasing marginal returns to capital. | ||
| the steady decrease in the labor-population ratio in France. | ||
| All of the above. |
Solution
The steady decrease in the labor-population ratio in France.
The underlying factors in France\'s relative decline can be noticed through a growth accounting approach to the various components of per capita GDP:
