Recall the growth-accounting equation [equation (1) on page 514). Calculate the growth of output if labor grows at 1 percent per year, capital grows at 4 percent per year, and technological change is 1112 percent per year.
How would your answer change if:
a. Labor growth slowed to 0 percent per year?
b. Capital growth increased to 5 percent per year?
c. Labor and capital had equal shares in GDP? Also, calculate for each of these conditions the rate of growth of output per hour worked.