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Suppose K, L, and a Grow at Constant Rates Given gˉk\bar { g } _ { k }

Question 50

Multiple Choice

Suppose k, l, and A grow at constant rates given by gˉk\bar { g } _ { k } gˉy\bar { g } _ { y } ,
And gˉA\bar { g } _ { A } `
What is the growth rate of y if y=Akal1a,a>0?y = A k ^ { a } l ^ { 1 - a } , a > 0 ?


A) gy=gˉA+a(gˉk+gˉt) g _ { y } = \bar { g } _ { A } + a \left( \bar { g } _ { k } + \bar { g } _ { t } \right)
B) gy=gˉA+agˉk+(1a) gˉlg _ { y } = \bar { g } _ { A } + a \bar { g } _ { k } + ( 1 - a ) \bar { g } _ { l }
C) gy=agˉA+agˉk+agˉlg _ { y } = a \bar { g } _ { A } + a \bar { g } _ { k } + a \bar { g } _ { l }
D) gy=gˉA+gˉla+gˉl(1a) g _ { y } = \bar { g } _ { A } + \bar { g } _ { l } ^ { a } + \bar { g } _ { l } ^ { ( 1 - a ) }
E) gy=gˉA×agˉk×(1a) gˉlg _ { y } = \bar { g } _ { A } \times a \bar { g } _ { k } \times ( 1 - a ) \bar { g } _ { l }

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