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

Question 101

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Suppose k and l grow at constant rates given by gˉk\bar { g } _ { k } and gˉi\bar { g } _ { i } and A is a constant. If y=Akal1ay = A k ^ { a } l ^ { 1 - a } the growth rate of y is gˉy=gˉA+agˉk(1a)gˉl.\bar { g } _ { y } = \bar { g } _ { A } + a \bar { g } _ { k } - ( 1 - a ) \bar { g } _ { l } .

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