Answered: Consider a production function Y =…

Consider a production function Y = AK0.2L 0.8 . Suppose the capital growth is 20%, labor growth is 10%, and output growth is 50%. b. What are the

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter16: Economic Growth

Section: Chapter Questions

Problem 6E

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Question

Consider a production function Y = AK0.2L 0.8 . Suppose the capital growth is 20%, labor growth is 10%, and output growth is 50%.

b. What are the contributions of capital growth and labor growth to output growth? What is productivity growth?

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