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Basic Growth Theory Notes on Growth Theory1 Growth AccountingNotations: Y –output or GDP, K–capital, L–labor, A–technology or total factor productivity (TFP); subscript t denotes the time, e.g. Yt is the output at time t.The change of variable X is defined byX can be Y, K, L, or A.Growth rate γX of variable X is∆Xt = Xt+1.