Macroeconomics 12th Edition by Rudiger Dornbusch ,Stanley Fischer,Richard Startz

Exercise 11

In a simple scenario with only two factors of production, suppose that capital's share of income is.4 and labor's share is.6 and that annual growth rates of capital and labor are 6 and 2 percent, respectively. Assume there is no technical change.
a. At what rate does output grow
b. How long will it take for output to double
c. Now suppose technology grows at a rate of 2 percent. Recalculate your answers to parts a and b.