Consider the economy described in problems 2.11. Suppose that annual growth in total factor productivity is 2%.
Question:
a. What is the steady-state growth rate of real GDP?
b. What is the steady-state growth rate of the capital–labor ratio?
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a From the Appendix g...View the full answer
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Related Book For
Macroeconomics
ISBN: 9780132109994
1st Edition
Authors: Glenn Hubbard, Anthony Patrick O'Brien, Matthew P Rafferty
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