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

Question 11

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=Akαl1α,α>0?y = A k ^ { \alpha } l ^ { 1 - \alpha } , \alpha > 0 ?


A) gˉy=gˉA+αgˉkαgˉl\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { k } - \alpha \bar { g } _ { l } .
B) gˉy=gˉA+α(gˉkgˉl) \bar { g } _ { y } = \bar { g } _ { A } + \alpha \left( \bar { g } _ { k } - \bar { g } _ { l } \right)
C) gˉy=gˉA+αgˉkαgˉl\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { k } - \alpha \bar { g } _ { l }
D) gˉy=gˉA+gˉkα+gˉL1α\bar { g } _ { y } = \bar { g } _ { A } + \bar { g } _ { k } ^ { \alpha } + \bar { g } _ { L } ^ { 1 - \alpha }
E) gˉy=gˉA+αgˉX+(1α) gˉZ\bar { g } _ { y } = \bar { g } _ { A } + \alpha \bar { g } _ { X } + ( 1 - \alpha ) \bar { g } _ { Z }

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