2 Over the past twenty years an economy's total output has grown from 1000 to 1300, its...
Question:
2 Over the past twenty years an economy's total output has grown from 1000 to 1300, its capital stock has risen from 2500 to 3250, and its labor force has increased from 500 to 575. All measurements are in real terms. Calcula te the contributions to economic growth of growth in capital, labor, and productivity:
a. assuming that aK � 0.3 and aN � 0.7.
b. assuming that aK � 0.5 and aN � 0.5.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Question Posted: