Essay
From one year to the next,a country's output rose from 4000 to 4500,its capital stock rose from 10,000 to 12,000,and its labor force declined from 2000 to 1750.Suppose aK = 0.3 and aN= 0.7.
(a)How much did capital contribute to economic growth over the year?
(b)How much did labor contribute to economic growth over the year?
(c)How much did productivity contribute to economic growth over the year?
Correct Answer:
Verified
(a)aK ?K/K = 0.3(2000 / 10,000...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q3: The Solow model demonstrates that<br>A)in the absence
Q4: Briefly explain the shape of the per-worker
Q14: Suppose the current level of output is
Q30: A government policy that would reduce the
Q33: An increase in the saving rate in
Q38: All else being equal,a permanent decrease in
Q46: A country has the per-worker production function
Q54: In the Solow model,if f(k)= 6k0.5,s =
Q56: The growth accounting equation is<br>A) <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB2853/.jpg"
Q68: In the absence of productivity growth,in a