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Consider the Cobb-Douglas Production Function

Question 23

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Consider the Cobb-Douglas production function Consider the Cobb-Douglas production function . (a) Write this in growth-rate terms. (b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth. (c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and , what is the growth rate of output per worker? If ?
.
(a) Write this in growth-rate terms.
(b) Next, define this in terms of per capita growth and identify the contributions of the
components of per capita growth.
(c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is
0.4 percent, TFP growth is 1.2 percent, and Consider the Cobb-Douglas production function . (a) Write this in growth-rate terms. (b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth. (c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and , what is the growth rate of output per worker? If ?
, what is the growth rate of output per
worker? If Consider the Cobb-Douglas production function . (a) Write this in growth-rate terms. (b) Next, define this in terms of per capita growth and identify the contributions of the components of per capita growth. (c) If the growth rate of capital per worker is 1.3 percent, the labor composition growth rate is 0.4 percent, TFP growth is 1.2 percent, and , what is the growth rate of output per worker? If ?
?

Correct Answer:

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(a) In growth terms we have: blured image .
(b) To c...

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