Solved

Suppose K and L Grow at Constant Rates Given By \bar

Question 98

Multiple Choice

Suppose K and L grow at constant rates given by gˉk\bar { g } _ { k } and gˉL\bar { g } _ { L } '
What is the growth rate of y if y=keley = \frac { k ^ { e } } { l ^ { e } } ?


A) gy=agˉX+agˉLg _ { y } = a \bar { g } _ { X } + a \bar { g } _ { L }
B) gy=a(gˉX+gˉL) g _ { y } = a \left( \bar { g } _ { X } + \bar { g } _ { L } \right)
C) gˉy=a(gˉXgˉL) \bar { g } _ { y } = a \left( \frac { \bar { g } _ { X } } { \bar { g } _ { L } } \right)
D) a(gˉXgˉL) a \left( \bar { g } _ { X } - \bar { g } _ { L } \right)
E) gˉy=agˉL+(1a) gˉL\bar { g } _ { y } = a \bar { g } _ { L } + ( 1 - a ) \bar { g } _ { L }

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions