7. The Republic of Ostralya has experienced a 5 per cent increase in output this year, a...
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7. The Republic of Ostralya has experienced a 5 per cent increase in output this year, a 2 per cent rise in its capital stock and a 3 per cent increase in total hours worked. Assuming a Cobb–Douglas production function where capital income accounts for 30 per cent of GDP, calculate how much output growth is explained by capital accumulation, labour and total factor productivity. LO 14.5 MEDIUM
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